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Gold prices gain as geopolitics back in play

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(Kitco News) - Gold and silver prices are firmer in early U.S. trading Tuesday. There are several geopolitical matters at work that have traders and investors worldwide in a bit of a risk-averse mood. December gold futures were last up $4.30 an ounce at 1,508.70. December Comex silver prices were last up $0.045 at $17.585 an ounce.

Global stock markets are still a bit wobbly, what with geopolitical issues lingering not far from the front burner of the marketplace, and which could flare up at any time. These include the U.S.-China trade war, U.S.-Iran tensions, Brexit, Hong Kong civil unrest and the Democrats working to impeach Trump. Reports overnight said German Chancellor Merkel told U.K. Prime Minister Johnson that the U.K’s Brexit deal won’t work for the European Union.

And as the U.S.-China trade talks get under way this week, the U.S. has just blacklisted 28 Chinese entities due to those firm purportedly repressing Muslims in China. Ideas are mixed on the outcome of this latest round of meetings between the world’s two largest economies. The Chinese may think they can leverage President Trump’s political problems in the U.S. to their advantage. However, Trump has “doubled-down” and said the U.S. will get a good and complete trade deal with China, or none at all.

Asian stocks were mostly higher overnight, while European shares were mostly lower. The U.S. stock indexes are pointed toward lower openings when the New York day session begins.

In overnight news, a manufacturing report out of Germany was upbeat, finally, as industrial output in August was up 0.3% from July.

Nymex crude oil prices are slightly down and trading around $52.50 a barrel today. The other key “outside market” sees the U.S. dollar index slightly down in early U.S. trading.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the producer price index, and the IBD/TIPP economic optimism index. Several Federal Reserve officials speak today, including Fed Chairman Powell to the NABE annual meeting.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage and have stabilized the market. Still, a four-week-old downtrend line is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,543.30. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at last week’s low of $1,465.00. First resistance is seen at Monday’s high of $1,518.80 and then at last week’s high of $1,525.80. First support is seen at $1,500.00 and then at $1,490.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the slight overall near-term technical advantage. However, a four-week-old downtrend is in place 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 last week’s low of $16.94. First resistance is seen at Monday’s high of $17.70 and then at last week’s high of $17.845. Next support is seen at the overnight low of $17.305 and then at $17.24. Wyckoff's Market Rating: 5.5.

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