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Gold, Silver Bulls Work To Stabilize Prices

Kitco News

(Kitco News) -  Gold and silver prices are steady to modestly up in early U.S. trading Tuesday. Some short covering in the futures markets and bottom-fishing in the cash markets are featured in both metals today, following Monday’s solid losses. The safe-haven metals are so far seeing little benefit from an uptick in risk aversion early this week. December gold futures were last up $1.70 an ounce at $1,190.40. December Comex silver was last up $0.006 at $14.34 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are poised for weaker openings when the New York day session begins. There are now early chart clues the U.S. stock indexes have put in at least near-term market tops, if not major tops.

World equity markets are still rattled by rising government bond yields that are pulling investor interest away from stocks. The benchmark U.S. 10-year Treasury note on Tuesday hit a yield of 3.25%, which is a 7.5-year high.

The world’s two largest economies are continuing to escalate their trade war that has also now turned into a war of words. The U.S. secretary of state and Chinese foreign minister exchanged harsh words on Monday.

The International Monetary Fund on Monday lowered its world economic growth forecasts due to the U.S.-China trade war and the presently shaky secondary world currency markets. This week, the Chinese yuan is in focus as it continues to depreciate against the U.S. dollar even as Chinese monetary officials work to stem the yuan’s slide.

The key outside markets today find the U.S. dollar index again higher, on safe-haven demand. Meantime, November Nymex crude oil prices are higher and trading just below $75.00 a barrel.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and the IBD/TIPP economic optimism index.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears have the solid overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,220.70. 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 $1,195.80 and then at $1,200.00. First support is seen at the September low of $1,184.30 and then at $1,175.00. Wyckoff's Market Rating: 2.5

Live 24 hours silver chart [ Kitco Inc. ]

December 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 $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at $14.50 and then at Monday’s high of $14.70. Next support is seen at $14.195 and then at $14.00. Wyckoff's Market Rating: 2.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.