Gold, silver see price gains amid bullish outside mkts.
(Kitco News) - Gold and silver prices are moderately up in early U.S. trading Tuesday. The key “outside markets” are in a bullish daily posture for the precious metals markets—the U.S. dollar index is lower and crude oil prices are higher. Gold and silver bulls are out of the gate in good fashion early this week--despite better risk appetite in the marketplace. October gold futures were last up $13.20 at $1,967.90 and December Comex silver was last up $0.33 at $27.685 an ounce.
Global stock markets were mostly up overnight. U.S. stock indexes are set for higher openings when the New York day session begins. Trader and investor risk appetite is keener early this week as many stock markets have rebounded from recent strong selling pressure that began the month of September.
In overnight news, China released some more upbeat economic data that further suggests its economy is taking off faster than other major economies, following the Covid-19 lockdowns. China’s industrial production in August was up 5.6%, year-on-year, and up 1.0% from July.
The International Energy Agency (IEA) Tuesday painted a gloomy picture for crude oil demand the rest of this year, predicting it would decline 8.4 million barrels per day, overall, this year.
Major central bank meetings are in the spotlight this week. The Federal Reserve, Bank of England and Bank of Japan all have monetary policy meetings this week. The Fed’s FOMC meeting will be closely scrutinized for more clarity following its shift to an easing of its inflation constricts. The FOMC meeting begins Tuesday morning and ends Wednesday afternoon.
The important outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are firmer and trading around $38.00. The yield on the U.S. Treasury 10-year note is trading around 0.68% today.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, weekly chain store sales, the Empire State manufacturing survey, import and export prices, and industrial production and capacity utilization.
Technically, the gold bulls have the firm overall near-term technical advantage and have gained momentum early this week. Prices are in an overall near-term uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,975.00 and then at the September high of $1,992.50. First support is seen at the overnight low of $1,955.60 and then at this week’s low of $1,937.00. Wyckoff's Market Rating: 7.0
December silver futures bulls have the firm overall near-term technical advantage. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $30.19 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.80. First resistance is seen at $28.00 and then at $28.50. Next support is seen at the overnight low of $27.345 and then at $27.00. Wyckoff's Market Rating: 7.0.