(Kitco News) - Gold and silver prices are solidly higher in midday U.S. trading Tuesday. Safe-haven demand is featured as reports have surfaced the U.S. has intelligence that Iran is preparing a ballistic missile attack on Israel. December gold was last up $23.20 at $2,683.10 and December silver was up $0.347 at $31.80.
The marketplace has been keeping a close eye on developments in the Middle East. Besides the latest news on a pending missile strike by Iran against Israel, the Israeli conflict with Hezbollah sees Israel putting troops on the ground in Lebanon. Thus far, Iran has been staying out of direct conflict with Israel. The marketplace is very concerned the Middle East is on the verge of all-out war between Iran and Israel that could envelope the U.S. and maybe even other major military powers.
It’s very likely gold prices will hit new record highs if Iran strikes Israel. Silver prices would also likely hit new for-the-move highs.
The U.S. stock market has sold off on the Iran-Israel news. The keener risk aversion in the marketplace sees U.S. Treasury yields dropping and the U.S. dollar index gaining. Crude oil prices have rallied on the Middle East conflict escalating.
In other news, Fed Chairman Jerome Powell made some markets-sensitive comments in an interview Monday afternoon, hinting that the Fed will make two 0.25% interest rate cuts yet this year. That somewhat disappointed the monetary policy doves, who want to see larger rate cuts. The U.S. stock market briefly sold off before rebounding, while gold prices lost some ground Monday afternoon.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at today’s high of $2,694.00 and then at the contract high of $2,708.70. First support is seen at the overnight low of $2,653.80 and then at this week’s low of $2,646.20. Wyckoff's Market Rating: 9.5.
December silver futures bulls have the firm overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at $32.50. Next support is seen at this week’s low of $31.155 and then at $31.00. Wyckoff's Market Rating: 7.0.
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