Gold prices pause as fresh inputs awaited
(Kitco News) - Gold and silver prices are steady to slightly lower in early U.S. trading Tuesday. The precious metals market watchers are awaiting some fresh fundamental news developments to help drive prices. December gold futures were last down $10.20 an ounce at 1,497.40. December Comex silver prices were last down $0.08 at $17.63 an ounce.
Asian and European stock markets were mixed overnight. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. Risk aversion is not keen Tuesday despite traders and investors backing off on their initial upbeat assessment of the U.S.-China “Phase 1” trade agreement reached last week, and which has yet to be signed.
China's trade war with the U.S. brought more dour news on China's manufacturing front. The world's second-largest economy saw its producer price index down 1.2% in September, year-on-year. Consumer price inflation rose 3% year-on-year in September, due to a surge in food prices at up 11%. The food rise was led by a more than 69% rise in pork prices due to the spreading African swine fever disease.
Germany's economy got more downbeat data Tuesday. The closely watched ZEW survey current situation index fell to -25.3 in October versus -19.9 in September, and -23.6 as the consensus forecast. The ZEW survey expectations index was -22.8 in October compared to -22.5 in September and
-26.4 that was forecast.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and the Empire State manufacturing survey.
Technically, the gold bulls have the overall near-term technical advantage. Still, a five-week-old downtrend line is in place on the daily bar chart and needs to be negated to give the bulls fresh technical strength. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at the overnight high of $1,503.00 and then at $1,508.00. First support is seen at Monday’s low of $1,487.10 and then at last week’s low of $1,478.00. Wyckoff's Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage but need to negate a five-week-old downtrend line still in place on the daily bar chart to gain fresh power. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.94. First resistance is seen at the overnight high of $17.765 and then at last week’s high of $18.00. Next support is seen at last week’s low of $17.305 and then at $17.00. Wyckoff's Market Rating: 6.0.