Gold, silver prices pop as stocks wobble on Trump trade rhetoric
(Kitco News) - Gold and silver prices are posting good gains in early U.S. trading Tuesday, on some safe-haven buying interest following downbeat remarks from President Trump regarding the U.S.-China trade negotiations. February gold futures were last up $11.40 an ounce at 1,480.20. March Comex silver prices were last up $0.249 at $17.205 an ounce.
Trader and investor risk appetite has again been dented Tuesday following Trump’s comments in London, regarding a partial U.S.-China trade deal. Trump said there is no timetable on even a partial deal and implied any deal could come after next year’s U.S. presidential election. “In some ways, it may be better to wait until after the election,” said Trump. Trump on Monday threatened Brazil and Argentina with trade tariffs and on Tuesday did the same to France.
Asian equities were mixed and European stock markets were mostly lower overnight. The U.S. stock indexes are pointed toward lower openings when the New York day session begins.
In other overnight news, the Euro zone producer price index in October rose 0.1% from September and was down 1.9%, year-on-year. That’s yet another worrisomely low inflation report coming from the world’s third-largest economy.
For the gold and silver market bulls awaiting a major geopolitical development to better boost safe-haven demand for their metals, here is one possibility: Reports overnight said Iran is in its deepest economic slump in 30 years and is now facing a serious cash crunch and is in “economic peril.” Iran’s dire predicament could prompt the country’s leaders to lash out with its military against its enemies that include the U.S. Destabilizing the Persian Gulf region would be one way Iran could retaliate against crippling economic sanctions that have been in place from the U.S. and the West.
The key “outside markets” today see the U.S. dollar index near steady. Nymex crude oil prices are higher and trading around $56.00 a barrel.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the ISM New York report on business and domestic auto industry sales.
Technically, the gold bears have the slight overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing futures prices below solid technical support at $1,425.00. First resistance is seen at $1,486.00 and then at $1,490.00. First support is seen at the overnight low of $1,465.40 and then at Monday’s low of $1,459.80. Wyckoff's Market Rating: 4.5
March silver futures bears also have the overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 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 last week’s high of $17.225 and then at $17.355. Next support is seen at the November low of $16.76 and then at $16.50. Wyckoff's Market Rating: 4.0.