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Gold sees price declines amid quieter marketplace

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Tuesday, as risk aversion has receded a bit early this week amid a calm trading environment at present. The safe-haven metals bulls need a fundamental spark to jumpstart price rallies. October gold futures were last down $9.70 at $1,782.60. December Comex silver was last down $0.321 at $23.475 an ounce.

Global stock markets were mixed in quieter overnight trading. The U.S. stock indexes are pointed to slightly higher openings when the New York day session begins. On tap Tuesday is the U.S. consumer price index report for August. The CPI is forecast up 0.4% after a rise of 0.5% in July. Year-on-year the CPI is seen up 5.4% in August—the same as July.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are higher, hit a five-week high, and trading around $71.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.341%.  

Other U.S. economic data due for release Tuesday includes the weekly chain store and Johnson Redbook retail sales reports, and the NFIB small business index.

Live 24 hours gold chart [Kitco Inc.]

Technically, October gold futures bulls still have the slight overall near-term technical advantage but are fading and need to show fresh power soon to keep their edge. A four-week-old uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,836.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at the overnight high of $1,794.00 and then at $1,800.00. First support is seen at last week’s low of $1,780.80 and then at $1,772.00. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures 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 August low of $22.35. First resistance is seen at this week’s high of $23.89 and then at $24.00. Next support is seen at Monday’s low of $23.36 and then at $23.00. Wyckoff's Market Rating: 4.0.

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.