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Gold price slightly up as greenback still wobbly

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(Kitco News) - Gold prices are up just a bit in early U.S. trading Tuesday, still supported in part by a weaker U.S. dollar index so far this week. Still, gains in the safe-haven metals are limited by less risk aversion in the marketplace early this week. December gold futures were last up $2.20 at $1,922.30 and December Comex silver was last up $0.01 at $24.57 an ounce.

Global stock markets were mixed overnight, with European shares slightly down and Asian shares modestly up. U.S. stock indexes are set to open the New York day session slightly lower. The marketplace is seeing less risk aversion early this week as President Trump left the hospital Monday evening and appeared to be in good spirits amid his battle with Covid-19. Ironically, a very big lead for Democrat Joe Biden in presidential election polls is also somewhat comforting the markets. Reason: A decisive Biden win would likely mean Trump would have a harder time contesting the results, to possibly suggest a smoother transfer of power. The markets may also be looking at a Biden win as meaning bigger government financial aid packages for U.S. businesses and citizens. Just remember, its 2020, so expect the unexpected.   

A feature in the marketplace just recently has been rising government bond yields. The yield on the benchmark U.S. Treasury 10-year note is trading around 0.76% today.

Fed Chairman Jerome Powell delivers a speech to a meeting of the National Association of Business Economists (NABE) today.

The U.S. Congress continues to discuss a second big financial aid package to deal with the negative economic impact of Covid-19. However, a deal between Democrats and Republicans still does not appear close.

The important outside markets early today see the U.S. dollar index slightly weaker. Nymex crude oil prices are higher and trading around $39.50 a barrel.

U.S. economic data due for release Tuesday is light and includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the international trade report, the IDB/TIPP economic optimism index.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bulls have the overall near-term technical advantage but prices are still trending down on the daily bar chart. More gains this week would negate the downtrend line on the daily chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,950.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at $1,925.00 and then at $1,950.00. First support is seen at the overnight low of $1,910.80 and then at $1,900.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage. However, prices are still trending lower on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at Monday’s high of $24.675 and then at $25.00. Next support is seen at Monday’s low of $23.805 and then at $23.50. Wyckoff's Market Rating: 6.5.

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.