(Kitco News) - Gold and silver prices are near steady in early U.S. trading Tuesday. The precious metals traders are waiting for fresh fundamental news to drive price direction. December gold was last up $1.00 at $2,666.60 and December silver was up $0.024 at $31.34.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to mixed openings when the New York day session begins. The S&P 500 stock index futures hit a record high Monday. The rally in the U.S. stock market is a bearish element for the precious metals, as they are a competing asset class. The equities rally also suggests less risk aversion in the general marketplace at present—also a negative for the safe-haven metals.
Reports early this week say Iran sent a message to the U.S. via a third country to say that if Israel’s response to the recent volley of missiles sent by Iran to Israel is limited to a specific target, Iran will not respond. Broker SP Angle this morning said that message “appears designed to put pressure on Israel via the U.S. and to persuade Israel not to target Iran’s oil terminals. If Israel hits Iranian oil facilities, then Iran will hit Israeli gas production, causing a potential new energy crisis. This would help Putin and hit Europe which is already struggling with high energy prices.” Also, the Washington post reported that Israel told the U.S. it will only attack Iran’s military targets. Crude oil prices are sharply lower today and trading around $70.25 a barrel, which is a bearish element for the raw commodity sector, including the metals. OPEC on Monday lowered its global demand growth estimate for crude oil, while the International Energy Agency today did the same.
The other key outside market today sees the U.S. dollar index a bit lower. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.081%.
U.S. economic data due for release Tuesday includes the Johnson Redbook weekly retail sales report and the Empire State manufacturing survey. Several Federal Reserve officials also give speeches today.
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 the contract high of $2,708.70. 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’st high of $2,684.20 and then at $2,700.00. First support is seen at today’s low of $2,654.40 and then at $2,645.00. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the overall near-term technical advantage. Prices are still in a nine-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 this week’s high of $31.75 and then at $32.00. Next support is seen at $31.00 and then at last week’s low of $30.345. Wyckoff's Market Rating: 7.0.
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