(Kitco News) - Gold and silver prices are slightly higher in early U.S. trading Tuesday. Some modest safe-haven demand is featured, as well as buying interest from the technical traders as the charts remain bullish for both metals. However, a solid rally in the U.S. dollar index to start 2024 is limiting the upside for the precious metals markets. February gold was last up $5.10 at $2,076.60. March silver was last up $0.054 at $24.135.
Asian and European stock markets were mixed overnight. U.S. stock index futures are set to open lower when the New York day session begins. Risk appetite in the marketplace is less robust on this first trading day of 2024. Reports say merchant ships in the Red Sea are still coming under attack from Iranian-backed Houthi rebels. The U.S. Navy sunk three Houthi boats on Sunday, killing its occupants. That has prompted some mild safe-haven demand for gold and silver.
In other news, there was more weak economic data coming out of China, as its official purchasing managers index (PMI) came in at 49.0 in December from 49.4 in November. The services sector PMI was unchanged at 49.3 in December. Readings below 50.0 suggest contraction in the sector.
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil prices are higher and trading around $73.25 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 3.948%.
U.S. economic data due out Tuesday includes the U.S. manufacturing purchasing managers index (PMI), the global manufacturing PMI and construction spending.
Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at the contract high of $2,152.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at the overnight high of $2,088.10 and then at $2,100.00. First support is seen at the $2,071.40 and then at $2,058.20. Wyckoff's Market Rating: 7.5.
The silver bulls have the overall near-term technical advantage. Prices are in a choppy, three-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at the December low of $22.785. First resistance is seen at the overnight high of $24.335 and
then at $24.50. Next support is seen at $24.00 and then at last week’s low of $23.76. Wyckoff's Market Rating: 6.0.
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