(Kitco News) - Gold and silver prices are firmer in early U.S. trading Tuesday as the key outside markets are in a mildly bullish posture for the precious metals: the U.S. dollar index is down a bit and crude oil prices are higher. However, gains in the metals are being nipped by a slight uptick in U.S. Treasury yields today. February gold was last up $6.60 at $2,665.10 and March silver was up $0.461 at $31.325.
Asian and European stock markets were mostly higher overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The U.S. indexes are at or near record highs and enjoying a seasonal “Santa Claus rally.”
In overnight 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 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 $69.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.209%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the RCM/TIPP economic optimism index, the jobs and labor turnover survey and domestic auto industry sales.
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 $2,650.00 and then at this week’s low of $2,644.50. Wyckoff's Market Rating: 6.0.
March silver futures bulls and bears are on a level overall near-term technical playing field. 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 the overnight high of $31.49 and then at $31.75. Next support is seen at the overnight low of $30.92 and then at this week’s low of $30.51. Wyckoff's Market Rating: 5.0.
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