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Gold, Silver Prices Solidly Up On Geopolitics

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(Kitco News) - Gold and silver prices are posting good gains in early U.S. trading Tuesday, with gold notching a six-year high and silver at a 1.5-year high. Safe-haven demand for the two precious metals is featured early this week, as protesting and civil unrest in Hong Kong has escalated. There are also other geopolitical developments recently that are unnerving traders and investors worldwide. December gold futures were last up $16.10 an ounce at 1,533.60. September Comex silver prices were last up $0.269 at $17.33 an ounce.

Asian and European stock markets were mostly lower overnight. U.S. stock indexes are also pointed toward modestly lower openings when the New York day session begins. There is more protesting by the citizens of Hong Kong, which has again shut down the city’s main airport. This situation is escalating and the world marketplace is now sensing some real trouble brewing in the Asian region. Pressure is building on mainland China to quell the civil unrest. The U.S.-China trade war is also escalating, with some Wall Street firms now advising their clients the U.S.-China trade conflict could deteriorate into a “cold war” similar to what the U.S. and Russia had for three decades. Throw in North Korea test-firing missiles, the U.S.-Iran stand-off and political unrest in Argentina and traders/investors have a whole bunch of worry simmering and maybe coming to a boil on the front burners of the world marketplace.

U.S. Treasuries and world government bond yields are dropping again. The German bund hit a new record-low yield of minus 0.617%. The U.S. dollar index and crude oil prices are fairly stable today, however.

Worries about slowing global economic growth were further stoked Tuesday when the closely watched German ZEW economic current conditions index in August had a reading of -13.5 versus -1.1 in July. The economic expectations component had a reading of -44.1 in August versus -34.5 in July. Germany is the economic workhorse of the European Union.

On tap in the U.S. today, the July consumer price index was just release and it rose 0.3%, which was in line with market expectations.

Other U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business index, and real earnings.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the strong overall near-term technical advantage. A 10-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,600.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,500.00. First resistance is seen at the overnight high of $1,546.10 and then at $1,550.00. First support is seen at $1,525.00 and then at today’s low of $1,520.80. Wyckoff's Market Rating: 9.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.685. First resistance is seen at today’s high of $17.49 and then at $17.65. Next support is seen at the overnight low of $17.035 and then at Monday’s low of $16.80. Wyckoff's Market Rating: 8.5.

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.