(Kitco News) - Gold and silver prices are higher in early U.S. trading Tuesday, with gold hovering just below its record highs. Safe-haven demand is keeping a floor under the two precious metals. December gold was last up $8.00 at $2,763.90 and December silver was up $0.319 at $34.32.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins. The marketplace is quieter this week and it appears many traders and investors are holding off on placing bigger trades until after the U.S. presidential election. The important U.S. jobs report on Friday could also be limiting markets participation this week. The trepidation presently in the marketplace appears to be supporting the safe-haven gold and silver markets.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil futures prices are presently higher and trading around $68.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.302%. U.S. bond yields have been on the rise lately. The Wall Street Journal reports concerns about the rising U.S. federal deficit are helping to push bond yields up. Investors “are betting a challenging fiscal situation might only get worse after the election,” said the report. The fact that gold is holding near its record high despite a strong U.S. dollar and rising Treasury yields also could be due to safe-haven demand regarding the potential for the U.S. government’s debt to balloon even more.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the advance economic indicators report, the monthly house price index, the S&P Core Logic house indexes, and the consumer confidence 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 $2,650.00. First resistance is seen at the contract high of $2,772.60 and then at $2,800.00. First support is seen at the overnight low of $2,752.00 and then at this week’s low of $2,736.90. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the solid overall near-term technical advantage. Prices are in an accelerating 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at $34.50 and then at $35.07. Next support is seen at the overnight low of $33.765 and then at $33.26. Wyckoff's Market Rating: 8.0.
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