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Gold prices weaker, markets await Trump speech

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(Kitco News) Gold and silver prices are modestly down in early U.S. trading Tuesday. The precious metals bulls are trying to stabilize their markets after recent strong selling pressure has driven prices to three-month lows. December gold futures were last down $3.10 an ounce at 1,454.20. December Comex silver prices were last down $0.002 at $16.80 an ounce.

There have been no new developments on the U.S.-China trade war front the past few days. However, President Trump on Tuesday will give a speech to the New York Economic Club that is likely to provide some fresh insight on Trump’s intentions on the matter. Trump last Friday sounded a bit less upbeat on the U.S.-China trade front, saying talks were going “very nicely” but adding the U.S. is not rolling back all of the import tariffs on Chinese products. Over the weekend Trump said China needs a trade deal completed way more than the U.S. needs it.

Asian and European stock indexes were mostly up overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Risk aversion in the world marketplace remains low.

The civil unrest in Hong Kong has escalated in recent days. Some reports are saying the city is now on the verge of shutting down. One protester was shot by police over the weekend and another man was set on fire by protesters. This situation could flare up into a major geopolitical event very quickly if mainland China gets more involved in the matter.

In other overnight news, Federal Reserve Vice Chairman Richard Clarida said very low global inflation levels are presenting problems for the world’s major central banks, including their ability to stimulate economic growth.

The key “outside markets” today see the U.S. dollar index higher. Nymex crude oil prices are firmer and trading around $57.25 a barrel. A U.S. Energy Department official said U.S. shale oil production will reach 13 million barrels per day in December.

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

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,400.00. First resistance is seen at Monday’s high of $1,467.40 and then at $1,475.00. First support is seen at Monday’s low of $1,448.90 and then at $1,440.00. Wyckoff's Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bears also have the overall near-term technical advantage. Prices are in a two-month-old downtrend 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 $16.00. First resistance is seen at $17.00 and then at $17.10. Next support is seen at Monday’s low of $16.63 and then at $16.50. Wyckoff's Market Rating: 4.0.

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