(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Tuesday, with gold scoring another record high of $2,784.00 an ounce, basis December Comex futures. Safe-haven demand is keeping a floor under the two precious metals ahead of key U.S. economic data later this week and the U.S. presidential election next week. Technical buying in both metals is also featured amid fully bullish charts. December gold was last up $24.90 at $2,780.60 and December silver was up $0.499 at $34.50.
The important U.S. jobs report on Friday and then next week’s U.S. elections have the marketplace pensive at present. That trepidation is supporting buying interest in 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 slightly down and trading around $67.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.324%. 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.
Technically, December gold bulls have the strong overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. 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 $2,700.00. First resistance is seen at the contract high of $2,784.00 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: 9.5.
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. A bull flag pattern has also formed on the daily 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 today’s high of $34.725 and then at $35.07. Next support is seen at today’s low of $33.765 and then at $33.26. Wyckoff's Market Rating: 8.0.
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