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Gold, silver prices feel the pressure from record-high U.S. stock market

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(Kitco News) - Gold and silver prices are lower and hitting new daily lows in early U.S. trading Tuesday, as rallying world stock markets that saw the U.S. indexes score more record highs overnight are keeping demand for the safe-haven metals squelched. December gold futures were last down $14.20 an ounce at 1,497.00. December Comex silver prices were last down $0.201 at $17.87 an ounce.

Asian and European stock indexes were mostly up in trading overnight. U.S. stock indexes are pointed toward modest gains and new all-time highs when the New York day session begins.

Risk sentiment worldwide remains upbeat amid ideas the U.S. and China are very close to a partial trade deal, called “Phase 1.” There are reports China is now pushing the U.S. to roll back some more tariffs on Chinese imports, with the U.S. possibly agreeing to such to get the deal sealed.

Other potential geopolitical hotspots have been quieter for weeks, including the Middle East. That’s also bearish for gold and silver markets.

In overnight news, the Euro zone September producer price index was reported up 0.1% from August and down 1.2%, year-on-year. The report is a reminder that very low inflation in most of the major world economies is still a problem.

The OPEC oil cartel has issued a report saying booming U.S. shale oil production will likely keep the cartel constraining its own oil output for at least the next five years. I have covered the energy markets for 35 years and the U.S. shale oil production technology coming on line about 10 years ago has been the most fundamentally game-changing development of all the markets I have followed the past three decades.

The key “outside markets” today see the U.S. dollar index modestly up. Nymex crude oil prices are higher and trading around $57.00 a barrel.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the international trade report, the U.S. services PMI, the ISN non-manufacturing report, and the IBD/TIPP economic optimism index.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls still have the overall near-term technical advantage but trading has been choppy and sideways for several weeks. 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 $1,511.90 and then at this week’s high of $1,517.10. First support is seen at $1,490.00 and then at last week’s low of $1,483.10. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage. Prices have been trending higher for five weeks. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.35 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.44. First resistance is seen at this week’s high of $18.23 and then at $18.35. Next support is seen at $17.795 and then at last week’s low of $17.59. Wyckoff's Market Rating: 6.5.

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