(Kitco News) - Gold and silver prices are lower in early U.S. trading Tuesday, amid strong gains in the U.S. dollar index and a rise in U.S. Treasury yields. February gold was last down $10.30 at $2,041.30. March silver was last down $0.124 at $23.205.
Asian and European stock markets were mostly lower overnight. U.S. stock index futures are set to open weaker when the New York day session begins. As U.S. traders get back from a long holiday weekend (U.S. markets were closed Monday for the Martin Luther King holiday.) they find elevated risk aversion in the marketplace following weekend Houthi attacks on vessels in the Red Sea, and U.S. and U.K. retaliatory air strikes in Yemen. That has helped to push the U.S. dollar index sharply higher today.
In other news, China’s central bank leaving its monetary policy unchanged disappointed those looking for more stimulus amid recent downbeat economic data from the world’s second-largest economy.
The key outside markets today see the U.S. dollar index sharply higher. Nymex crude oil prices are slightly up and trading around $73.00 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.012%.
U.S. economic data due out Tuesday is light and includes the Empire State manufacturing survey.
Technically, the gold futures bulls have the 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 $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,050.00 and then at the overnight high of $2,062.80. First support is seen at last Friday’s low of $2,033.10 and then at $2,025.00. Wyckoff's Market Rating: 6.5.
The silver bears have the overall near-term technical advantage. Prices are in a choppy, five-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $22.26. First resistance is seen at today’s high of $23.50 and then at $23.715. Next support is seen at $23.00 and then at last week’s low of $22.63. Wyckoff's Market Rating: 4.0.
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