(Kitco News) - Gold and silver prices are higher in early U.S. trading Wednesday, with gold lurking just below its record highs. The precious metals are supported by safe-haven buying amid heightened geopolitical tensions and on chart-based buying amid bullish technicals. December gold was last up $17.10 at $2,696.00 and December silver was up $0.319 at $32.075.
Tensions are still running high in the Middle East as Israel pounded Hezbollah installations in Lebanon overnight. The marketplace remains anxious regarding how Israel will respond, militarily, to Iran’s missile barrage against Israel a couple weeks ago.
It’s been a quieter U.S. data week so far. However, a heavy slate of U.S. data is due out Thursday, including the retail sales and weekly jobless claims reports that could provide some sparks in the marketplace.
Asian and European stock indexes were mostly weaker overnight. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins.
The key outside markets today see the U.S. dollar index slightly higher. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.010%. Crude oil prices are a bit weaker and trading around $70.25 a barrel.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, import and export price indexes, and the monthly Treasury budget statement.
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 the contract high of $2,708.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the October low of $2,648.90. First resistance is seen at $2,700.00 and then at $2,708.70. First support is seen at today’s low of $2,674.90 and then at this week’s low of $2,654.40. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the firm overall near-term technical advantage. Prices are 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 the October low of $30.345. First resistance is seen at $32.50 and then at $33.00. Next support is seen at the overnight low of $31.60 and then at $31.00. Wyckoff's Market Rating: 7.0.
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