(Kitco News) - Gold prices are modestly up and silver near steady in U.S. trading Tuesday. The general marketplace has calmed down a bit following Monday’s high anxiety that saw major sell-offs in global stock markets. December gold was last up $8.70 at $2,453.10. September silver was down $0.022 at $27.185.
Asian and European stock indexes were mostly higher overnight. Japan’s Nikkei closed 10% higher Tuesday, recovering much of Monday’s 12.4% loss. U.S. stock indexes are pointed toward higher openings when the New York day session begins, after hitting three-month lows Monday. There are technical clues the stock market bears have run out of gas after a steep three-week downdraft. Trading action the rest of this week will be extra important in determining if the big sell off has ended.
Worries about a broader Middle East war are still on the front burner of the marketplace. Israel is bracing for a major attack from Iran and its proxies after Israel last week assassinated key military officials from Hamas and Hezbollah. Reports said truckloads of surface-to-surface missiles are headed to southern Syria. Weapons convoys were seen moving from Iran through Iraq to Syria. Iran is also moving missile launchers, the reports said.
In other overnight news, Australia’s central bank left its monetary policy unchanged but said inflation remains too high.
The key outside markets today see the U.S. dollar index higher on a rebound after hitting a 4.5-month low Monday. Nymex crude oil prices are near steady after hitting a six-month low Monday and are trading around $72.75 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.865%.
U.S. economic reports out Tuesday include the Johnson Redbook weekly retail sales report, the international trade report, and the RCM/TIPP economic optimism index.
Technically, December gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,537.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at the overnight high of 2,459.50 and then at $2,475.00. First support is seen at the overnight low of $2,434.60 and then at $2,425.00. Wyckoff's Market Rating: 6.5.
September silver futures bears have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $39.355. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at the overnight high of $27.67 and then at $28.00. Next support is seen at Monday’s low of $26.595 and then at $26.00. Wyckoff's Market Rating: 3.5
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