Gold Hits 2-Week High Amid Weaker U.S. Dollar
(Kitco News) - Gold prices are firmer and scored a two-week high in early U.S. trading Tuesday. A weaker U.S. dollar index on this day is a bullish element for the precious metals markets. However, with little risk aversion among traders and investors at present, the upside for the safe-haven metals will likely be limited. December gold futures were last up $2.90 an ounce at $1,218.70. December Comex silver was last up $0.028 at $14.995 an ounce.
World stock markets were again mostly higher overnight. U.S. stock indexes are pointed toward higher openings and at new record highs when the New York day session begins.
The world marketplace is still buzzing about the U.S. and Mexico coming to terms on a trade agreement. World stock markets rallied on the news. Some now reckon the U.S. will get to work on agreements with its other major trading partners, including the EU and China. However, President Trump has indicated he’s in no rush to make a deal with China.
The key outside markets today find the U.S. dollar index weaker. The greenback bulls are fading a bit now. Meantime, Nymex crude oil prices are slightly up and trading around $69.00 a barrel.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the advance economic indicators report, the S&P/Case-Shiller home price index, the consumer confidence index and the Richmond Fed business survey.
Technically, gold bears still have the overall near-term technical advantage but a price downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at the overnight high of $1,220.70 and then at $1,225.00. First support is seen at Monday’s low of $1,209.30 and then at $1,200.00. Wyckoff's Market Rating: 3.0
December silver futures bears have the overall near-term technical advantage, but prices hit a two-week high overnight. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at the overnight high of $15.07 and then at $15.25. Next support is seen at Monday’s low of $14.82