(Kitco News) - Gold and silver prices are modestly higher in midday U.S. trading Tuesday, on upside price corrections following the strong losses posted Monday. However, risk appetite is keener early this week, which is limiting the upside for the safe-haven metals. December gold was last up $8.60 at $2,627.10 and December silver was up $0.256 at $30.495.
There are growing reports that Israel and Hamas may be close to a ceasefire agreement. That helped to prompt heavy profit taking and weak long liquidation in the gold and silver futures markets Monday. There is also talk in the marketplace that incoming President Trump will be able to broker a ceasefire deal with Russia and Ukraine. These two possibilities are putting risk appetite back into the marketplace at present.
U.S. stock indexes are mixed at midday. Stock markets are jittery after President-elect Donald Trump late Monday made his first specific threats on trade tariffs--announcing an additional 10% tariff on goods from China and 25% on products from Mexico and Canada. European and Asian stocks fell on the news. A Bloomberg news headline today reads: “Tariff man is back.”
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are near steady and trading around $69.00 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently around 4.3%.
Technically, December gold bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,723.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at today’s high of $2,642.00 and then at $2,650.00. First support is seen at today’s low of $2,605.30 and then at $2,600.00. Wyckoff's Market Rating: 5.0.
December silver futures bears have the slight overall near-term technical advantage. Bears are working to restart a price downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. 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 today’s high of $30.74 and then at $31.00. Next support is seen at $30.00 and then at $29.75. Wyckoff's Market Rating: 4.5.
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