(Kitco News) - Gold and silver prices are sharply lower and hit three-week lows in late-morning U.S. trading Tuesday, on news reports that the Hezbollah group based in Lebanon wants to discuss a ceasefire with Israel. Israel is presently conducting major military operations against the group in Lebanon. Market participants are deeming today’s news as a potential de-escalation of the Middle East tensions that have been elevated for weeks. December gold was last down $33.10 at $2,632.80 and December silver was down $1.40 at $30.61.
The Hezbollah news sunk the crude oil market, with Nymex crude down around $3.75 a barrel at $73.50 after hitting a 3.5-month high overnight. The U.S. dollar index has moved above unchanged today and is trading at its daily high, while U.S. Treasury yields have up-ticked lately—both bearish “outside-market” elements for the precious metals markets. The 10-year note yield is presently at 4.028%.
U.S. stock indexes are rallying today, which is also a negative for the safe-haven metals markets.
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.
Technically, December gold bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,708.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,572.50. First resistance is seen at $2,650.00 and then at today’s high of $2,672.40. First support is seen at $2,625.00 and then at $2,610.00. Wyckoff's Market Rating: 7.5.
December silver futures bulls have the overall near-term technical advantage but are now fading. A seven-week-old uptrend on the daily bar chart is in serious jeopardy and 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 $29.00. First resistance is seen at $31.00 and then at $31.50. Next support is seen at $30.00 and then at $29.50. Wyckoff's Market Rating: 6.5
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