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Gold price down as charts remain firmly bearish

Kitco News

(Kitco News) - Gold and silver prices are weaker in early U.S. trading Tuesday. Technical selling is featured in both precious metals as the charts remain in bearish postures. U.S. Treasury yields have been on the rise and are near multi-year highs, while the U.S. dollar index hovers near a 6.5-month high—both bearish outside market elements for the metals. December gold was last down $5.50 at $1,931.10 and December silver was down $0.105 at $23.28.

Asian and European stocks were mixed to weaker overnight. U.S. stock indexes are pointed to lower openings when the New York day session begins. Traders and investors are in risk-off moods early this week, amid the high potential for a U.S. government shutdown this coming weekend. The Associated Press reports "there's no clear path ahead as lawmakers return with tensions high and options limited." The U.S. House is expected to vote Tuesday evening on a package of bills to fund parts of the government, but it's not clear that House Speaker McCarthy has the support needed to move ahead. Meanwhile, the U.S. Senate is preparing its own bipartisan plan for a stopgap measure to buy some time and keep offices funded past Saturday's deadline. "A government shutdown would disrupt the U.S. economy and the lives of millions of Americans," said the AP.

The gold and silver market bulls are again perplexed their metals are seeing little to no safe-haven buying interest as stormy waters may lie just ahead for the marketplace.

Hedge funds still neutral on gold, silver as economic uncertainty supports prices

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are lower and trading around $89.00 a barrel. The benchmark U.S. Treasury 10-year note yield is presently at a multi-year high and fetching 4.509%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the monthly house price index, the S&P Core Logic house price index, the Richmond Fed business survey, the consumer confidence index, and new residential sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bears have the solid overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close in December futures above solid resistance at the September high of $1,980.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at this week's high of $1,946.80 and then at $1,950.00. First support is seen at the overnight low of $1,928.20 and then at the September low of $1,921.70. Wyckoff's Market Rating: 2.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. However, there are stiff technical support layers just below the market that may well halt the decline. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.75 and then at last week's high of $24.05. Next support is seen at $23.00 and then at the September low of $22.555. Wyckoff's Market Rating: 4.0.

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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.