(Kitco News) - Gold prices are modestly up in early U.S. trading Tuesday. Save haven bids are keeping the yellow metal not far below its recent record high. Silver prices are lower. The Middle East geopolitical situation that remains very tense is keeping a floor under the gold and silver markets. December gold was last up $4.70 at $2,670.70 and December silver was down $0.354 at $31.65.
Asian and European stock indexes were mixed overnight. China markets are reopened after an extended public holiday. U.S. stock indexes are pointed to higher openings when the New York day session begins.
The highly anticipated economic briefing by China’s National Development and Reform Commission Tuesday “underwhelmed markets, offering little in the way of new stimulus measures,” said broker SP Angel. That news prompted sell-offs in the Chinese stock indexes, with the Hang Seng index dropping almost 10% and it’s biggest one-day loss in nearly two years.
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are lower after hitting a 2.5-month high overnight and are trading around $75.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.996%.
U.S. economic data due for release Tuesday includes the NFIB small business index, the international trade report, the weekly Johnson Redbook retail sales report, and the RCM/TIPP economic optimism index.
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 this week’s high of $2,679.20 and then at last Friday’s high of $2,690.60. First support is seen at $2,650.00 and then at $2,646.20. Wyckoff's Market Rating: 8.5.
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 but bulls need to show fresh power soon to keep it alive. 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 this week’s high of $32.595. Next support is seen at the overnight low of $31.23 and then at $31.00. Wyckoff's Market Rating: 7.05.
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