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Gold, silver prices pressured by rallying global stock markets

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(Kitco News) - Save-haven gold and silver prices are lower again in early U.S. futures trading Tuesday. Upbeat trader and investor attitudes, as evidenced by rallying global stock markets, including the U.S. stock indexes hitting record highs overnight, continue to work against the competing asset class of precious metals markets. February gold futures were last down $6.90 an ounce at 1,543.70. March Comex silver prices were last down $0.231 at $17.765 an ounce.

Asian and European stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Mild corrective pullbacks are in order on this “turnaround Tuesday,” following recent gains that put U.S. stock indexes at record highs overnight. The geopolitical scene has quieted down markedly the past few days.

The marketplace this week is focused on the U.S.-China partial trade agreement that is scheduled to be signed Wednesday in Washington, D.C. The trade deal is expected to boost global economic growth in 2020. China Tuesday reported its exports grew by just 0.5% in 2019, compared to 10% growth in 2018, as evidence of the trade war with the U.S. damaging China’s economy. China’s imports were reported down 2.8% in 2019 compared to rising 16% in 2018.

In overnight news, the Chinese yuan appreciated to its highest level against the U.S. dollar since last summer, after the U.S. on Monday announced China was no longer on its list of currency manipulators.

The key outside markets today see crude oil prices firmer and trading around $58.50 a barrel. The U.S. dollar index is modestly up early today.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business optimism index, the consumer price index, real earnings and the IDB/TIPP economic optimism index.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage, but they are fading and the January spike high is strong chart resistance to overcome. A price uptrend is still in place on the daily chart but the bulls need to stop the bleeding soon. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the September high of $1,571.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,525.00. First resistance is seen at $1,550.00 and then at this week’s high of $1,563.10. First support is seen at the overnight low of $1,536.40 and then at $1,530.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls still have the slight overall near-term technical advantage but are fading as a five-week-old price uptrend on the daily chart has been negated. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $18.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $18.00 and then at this week’s high of $18.13. Next support is seen at the overnight low of $17.69 and then at $17.50. Wyckoff's Market Rating: 5.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.