(Kitco News) - Gold prices are solidly higher and silver firmer in early U.S. trading Tuesday. Safe-haven buying is featured early this week as geopolitics is heating up, prompting keener risk aversion. December gold was last up $23.60 at $2,638.00 and December silver was up $0.186 at $31.41.
Reports said Ukraine carried out a first strike on a border region in Russia using Western-supplied longer-range missiles. Meanwhile, Russian President Putin signed a decree allowing Russia to fire nuclear weapons in response to a massive conventional attack on Russia.
European stocks fell and bond prices rose in response to the escalating conflict. Asian markets were mostly closed when that news surfaced. Germany’s 10-year yield slumped to the lowest since October.
Asian and European stock markets were mixed to lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Risk aversion is keener in the general marketplace early this week as the Russia-Ukraine war is escalating.
In overnight news, the Euro zone’s October consumer price index came in at up 2.0%, year-on-year, which was right in line with market expectations.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are down a bit and trading around $68.85 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.359%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report and new residential construction.
Technically, December gold bears have the slight overall near-term technical advantage. However, a price downtrend on the daily bar chart is now in jeopardy. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $2,541.50. First resistance is seen at the overnight high of $2,643.40 and then at $2,650.00. First support is seen at the overnight low of $2,614.20 and then at $2,600.00. Wyckoff's Market Rating: 4.5.
December silver futures bears have the slight overall near-term technical advantage. Prices are still trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.00. The next downside price objective for the bears is closing prices below solid support at the November low of $29.75. First resistance is seen at $31.66 and then at $32.00. Next support is seen at the overnight low of $31.21 and then at $31.00. Wyckoff's Market Rating: 4.5.
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