Gold, Silver Prices See Corrective Bounces
(Kitco News) - Gold and silver prices modestly up in early U.S. trading Tuesday, on mild rebounds after gold hit a nearly 1.5-year low and silver a two-year low on Monday. December gold futures were last up $3.80 an ounce at $1,202.80. September Comex silver was last up $0.068 at $15.05 an ounce.
The currency markets have stabilized a bit today, following Monday’s and recent price action that have seen the world’s secondary currencies seriously depreciate against the U.S. dollar—especially the Turkish lira. Still, this matter is of serious concern to traders and investors as they worry about a contagion-type scenario that has gripped currency markets in recent history. Gold and silver traders have been frustrated their safe-haven metals have not benefitted from this situation—at least not yet.
In other overnight news, economic data released by China shows the world’s second-largest economy is seeing its rate of growth slowing, due in part to the trade war with the U.S. Fixed-investment spending in China grew by 5.5% in the first half of the year, which is the slowest pace in nearly 20 years. Last year’s investment rate was 8.3% for the same time period. Retail sales in China also slipped a bit in July.
Meantime, German economic growth increased in the second quarter, at a 1.8% annual rate.
The key outside markets today find the U.S. dollar index slightly lower on a downside correction from recent solid gains that pushed the index to a 13-month high on Monday. Meantime, Nymex crude oil prices are higher and trading just above $68.00 a barrel. Oil prices hit a six-week low on Monday.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, import and export price indexes, and the NFIB index of small business optimism.
Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. 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 $1,150.00. First resistance is seen at $1,212.50 and then at Monday’s high of $1,221.40. First support is seen at Monday’s low of $1,198.60 and then at $1,190.00. Wyckoff's Market Rating: 1.0
September silver futures bears have the solid overall near-term technical advantage. 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 $15.00. First resistance is seen at Monday’ high of $15.345 and then at $15.50. Next support is seen at Monday’s low of $14.97 and then at $14.75. Wyckoff's Market Rating: 1.0.