(Kitco News) - Gold prices are not straying too far from unchanged in quieter early U.S. trading Tuesday. Silver prices are modestly up. Arguably the biggest markets-events week of the year is now playing out. December gold was last up $0.80 at $2,747.00 and December silver was up $0.196 at $32.805.
The general marketplace is pensive early this week, as today is U.S. election day and the presidential candidates are believed to be in a near dead-heat. The final outcome of the presidential vote could take days to determine. Trading in many markets could be volatile later this week as the U.S. election results shake out. A DowJones Newswire story today said gold prices stand to benefit no matter which candidate wins.
Also on tap this week is the FOMC meeting of the Federal Reserve. The meeting starts Wednesday morning and ends Thursday afternoon with the FOMC statement and press conference from Fed Chair Powell. Most believe the Fed will cut its main interest rate by 0.25%, especially after a weaker U.S. employment report released last Friday.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to slightly firmer openings when the New York day session begins. The U.S. stock indexes have backed off their recent highs and the bulls have faded a bit.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are a bit firmer and trading around $71.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.313%.
U.S. economic data due for release Tuesday includes the international trade report, the weekly Johnson Redbook retail sales report, the ISM report on business services, and the U.S. services PMI.
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 $2,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,675.00. First resistance is seen at this week’s high of $2,757.50 and then at last Friday’s high of $2,772.40. First support is seen at the overnight low of $2,733.40 and then at $2,722.10. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the overall near-term technical advantage but have faded a bit. A three-month-old uptrend on the daily bar chart is now in some jeopardy. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $35.07. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.00 and then at $33.25. Next support is seen at the overnight low of $32.355 and then at $32.00. Wyckoff's Market Rating: 7.0
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
