Gold price rises on safe-haven demand
(Kitco News) - Gold prices are moderately up and hit a nearly four-week high in early U.S. trading Tuesday. Safe-haven demand is featured amid keener risk aversion in the marketplace today. October gold futures were last up $13.10 at $1,790.70. September Comex silver futures were last up $0.113 at $20.47 an ounce.
U.S.-China tensions are on the rise today as U.S. House Speaker Nancy Pelosi is reportedly set to visit Taiwan Tuesday evening. China has vowed retaliation. Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session beings.
Overnight news that the U.S. military killed the leader of Al Qaida in a drone strike in Kabul had little impact on markets.
The key outside markets today see Nymex crude oil prices near steady and trading around $93.75 a barrel. Traders are awaiting an OPEC meeting Wednesday. The U.S. dollar index is slightly higher in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.56%.
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U.S. economic data due for release Tuesday is light and includes the weekly Johnson Redbook and chain store sales retail reports. A couple of Federal Reserve officials also speak today.
Technically, the October gold futures bears have the overall near-term technical advantage. However, a price downtrend on the daily bar chart has been negated and prices last Friday saw a bullish weekly high close that is one chart clue that a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at $1,800.00 and then at $1,820.00. First support is seen at the overnight low of $1,775.30 and then at this week’s low of $1,764.10. Wyckoff's Market Rating: 3.0
September silver futures bears have the overall near-term technical advantage. However, a price downtrend on the daily bar chart has been negated and prices last Friday closed at a bullish weekly high close, to suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.51 and then at $20.75. Next support is seen at $20.00 and then at last Friday’s low of $19.825. Wyckoff's Market Rating: 3.0.