(Kitco News) - Gold and silver prices are higher in midday U.S. trading Tuesday, supported by two key outside markets that are in mildly bullish daily postures for the two precious metals: the U.S. dollar index is down a bit and crude oil prices are higher. There is also likely some safe-haven buying on news that South Korea has declared martial law, which has created keener uncertainty in that region. February gold was last up $12.50 at $2,671.00 and March silver was up $0.656 at $31.52.
In other news, France’s government faces a no confidence vote on Wednesday, led by Marine Le Pen. Since President Macron called a snap election in June, “French assets have been dragging on Europe,” according to Bloomberg. “France’s divided Parliament has been unable to tackle the country’s mushrooming budget deficit, raising concern that investors may continue to shun the country.” Prime Minister Michel Barnier faces the no-confidence vote tomorrow that looks likely to pass. Barnier warned of a storm in financial markets if he is dismissed. “The fall of the government is a scenario investors haven’t fully accounted for,” said a Bloomberg report. This situation is also being closely monitored by financial markets and precious metals traders.
It’s a busy U.S. economic data week, including the monthly employment situation report from the Labor Department on Friday. Non-farm payrolls likely rose by around 200,000 in November, according to a Bloomberg survey. Wednesday, Fed Chairman Jerome Powell participates in a panel discussion. The OECD will release new economic forecasts Wednesday. The OPEC oil cartel meets on Thursday.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are higher and trading around $70.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.21%.
Technically, February gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,748.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at this week’s high of $2,678.50 and then at last Friday’s high of $2,690.50. First support is seen at today’s low of $2,656.60 and then at this week’s low of $2,644.50. Wyckoff's Market Rating: 6.0.
March silver futures bulls have gained the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $31.75 and then at $32.00. Next support is seen at $31.00 and then at this week’s low of $30.51. Wyckoff's Market Rating: 5.5.
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