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Gold, silver see price gains as U.S. dollar index slips, crude oil up

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(Kitco News) - Gold and silver prices are higher in early U.S. trading Tuesday, supported on this day by a lower U.S. dollar index and higher crude oil prices. U.S. Treasury yields have down-ticked just a bit today and that's also friendly for the safe-haven metals. December gold was last up $8.10 at $1,747.70 and December silver was up $0.403 at $21.275.

Global stock markets were mixed overnight. U.S. stock indexes are headed for slightly higher openings when the New York day session begins. Risk appetite remains muted early this week as Covid cases surge in China. News reports are calling China's largest city, Beijing, a "ghost town." Some analysts are saying 20% of China's economy is being negatively impacted by the Covid lockdowns.

Wednesday will be the busiest day for U.S. economic data, including the minutes from the last FOMC monetary policy meeting, to be released in the early afternoon. A Barron's headline today reads: "Don't tune out for the holidays; the Fed minutes will be a must watch." The minutes may contain fresh clues on the future path and timing of Fed monetary policy.


Gold and silver need more than short covering, hedge funds still reluctant to place bullish bets

The key outside markets today see the U.S. dollar index lower, on a corrective pullback from solid gains posted Monday. Nymex crude oil prices are firmer and trading around $80.50 a barrel. The crude oil market was roiled Monday by reports Saudi Arabia is contemplating raising its crude oil production—only to have Saudi officials deny the report. Oil prices fell to an 11-month low shortly after the news reports hit the wires. The yield on the benchmark U.S. 10-year Treasury note is presently 3.793%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail indexes and the Richmond Fed business survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls and bears are on a level overall near-term technical playing field. Bulls' next upside price objective is to produce a close above solid resistance at the November high of $1,791.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week's high of $1,755.00 and then at $1,770.00. First support is seen at the overnight low of $1,738.90 and then at this week's low of $1,733.90. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the slight overall near-term technical advantage but have faded. A choppy, 2.5-month-old uptrend is still in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $22.38. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $21.50 and then at $22.00. Next support is seen at $21.00 and then at this week's low of $20.60. 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.