(Kitco News) - Gold prices are weaker and silver prices sharply lower in midday U.S. trading Tuesday. Profit taking and position evening are featured just ahead of a big and busy week of U.S. economic reports. This is also the first U.S. trading day of September, a month that has a history of causing stock and financial market turbulence. Reads a Wall Street Journal headline today: “Markets’ summer vacation is over.” December gold was last down $8.80 at $2,518.70 and December silver was down $0.806 at $27.925.
U.S. stock indexes are solidly lower at midday. This week’s big U.S. data is highlighted by Friday morning’s monthly employment situation report from the Labor Department. Also out this week is the JOLTS report Wednesday.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are solidly lower, hit a seven-month low and trading around $71.00 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.852%.
Technically, December gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,475.00. First resistance is seen at today’s high of $2,529.50 and then at $2,550.00. First support is seen at today’s low of $2,504.40 and then at $2,500.00. Wyckoff's Market Rating: 8.0.
December silver futures bulls have lost their slight overall near-term technical advantage and are fading. A price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at the August low of $26.885. First resistance is seen at $29.00 and then at today’s high of $29.35. Next support is seen at $28.00 and then at $27.50. Wyckoff's Market Rating: 5.0
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