Strong price gains for gold, silver amid weak USDX, bullish charts
NEW YORK (December 15) Gold and silver prices are solidly higher in early U.S. trading Monday. Both markets are not far below their record highs. The two precious metals are seeing solid technical buying and are also benefiting a weakening U.S. dollar index. February gold was last up $51.90 at $4,380.00. March silver prices were up $1.958 at $63.955.
Global stock markets were mixed overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins.
In overnight news, China’s CMOC Group extended its push into precious metals with a $1 billion deal to buy the Brazilian operations of Equinox Gold Corp. The deal will give CMOC full ownership of several mines or deposits in Brazil, with Equinox receiving $900 million in cash, plus a contingent payment of as much as $115 million, Bloomberg reported. The transaction is expected to be completed in the first quarter of next year, and will give CMOC full ownership of Aurizona, RDM, Fazenda and Santa Luz mines, with a combined annual gold production.
U.S., Ukraine, EU officials holding more peace talks in Berlin. Ukraine and the U.S. are due to hold a second day of talks in Berlin, Germany on a plan aimed at ending Russia’s war, with allied security guarantees for Kyiv a central focus of the negotiations, reports Bloomberg. About 10 European leaders are also expected to attend a summit today, together with NATO Secretary General Mark Rutte and European Commission President Ursula von der Leyen. Ukraine President Volodymyr Zelenskiy and his team held more than five hours of talks at Germany’s Federal Chancellery on Sunday with U.S. officials led by special envoy Steve Witkoff and Jared Kushner, President Donald Trump’s son-in-law. The sides discussed Ukraine’s territory as the U.S. is backing a Russian demand for Kyiv to withdraw from areas of its eastern Donetsk region that Moscow’s forces have failed to seize since 2014, a person familiar with the matter said. Zelenskiy repeatedly rejected the demand and together with European allies is insisting on a ceasefire along the current line of contact, the person said, asking not to be identified discussing sensitive issues and as reported by Bloomberg. The Ukrainian president signaled that Kyiv could step back from its long-term goal of joining NATO if it reached bilateral security agreements with the US, European and other states, potentially including Canada and Japan. Those agreements would function similarly to NATO’s Article 5 mutual-defense commitment to prevent “another coming of Russian aggression,” Zelenskiy told reporters on Sunday.
Warsh, Hassett are top Trump choices for Fed Chair. President Trump said Kevin Hassett and Kevin Warsh are his top choices to lead the Federal Reserve and that he expects the next chair of the central bank to consult with him on interest rates, Bloomberg reports. Trump, in an interview with the Wall Street Journal Friday, indicated that Warsh, a former Fed governor, has climbed up the short list of contenders to challenge Hassett, the White House National Economic Council head whom many had seen as the frontrunner for the job. “I think the two Kevins are great,” he said. “I think there are a couple of other people that are great.” Trump previously signaled that he already made up his mind, saying Monday he had a “a pretty good idea” of who to nominate. The president last month also said he knew who he would pick for the job. The latest comments suggest that the selection process remains in flux.
More signs of a global crude oil glut. The Middle Eastern crude oil market has weakened on concerns that regional supplies will outstrip demand, adding to signs of a softening global picture, Bloomberg said in a report. The premium of Abu Dhabi's flagship Murban over Brent has declined to the narrowest since early October, signaling concern that too much crude is being offered in the Middle East. The International Energy Agency forecasts there will be a record global crude glut next year, with the surplus in the oil market set to grow further in 2026.
China’s industrial output growth hits 15-month low. China’s industrial production rose 4.8%, year-on-year, in November, easing from 4.9% growth in October and missing forecasts of 5.0% growth. It marked the slowest yearly increase since August of 2024 amid softer manufacturing and utility output. Meanwhile, China’s retail sales grew by 1.3%, below estimates of 2.9% growth and the weakest gain since December of 2022, despite ongoing consumer subsidy programs. TradingEconomics.com
The key outside markets today see the U.S. dollar index down a bit. Crude oil prices are slightly lower trading around $57.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.17%.
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