(Kitco News) - Gold prices are firmer in early U.S. trading Tuesday, with chart-based buying featured amid overall bullish technicals. Reports of better demand from China’s central bank are also helping to boost the yellow metal. Safe-haven demand amid a still-turbulent Middle East and political troubles in South Korea is also lifting gold. February gold was last up $13.40 at $2,699.20 and March silver was down $0.086 at $32.525.
Asian stock indexes were mixed and European stock markets lower overnight. U.S. stock indexes are pointed toward mixed to slightly higher openings when the New York day session begins.
In overnight news, China’s exports in November were up 6.7%, year-on-year, which is down from the 12.7% gain in the October report. Imports were down 3.9% in November after a 2.3% drop in October, year-on-year. These numbers suggest “continued weakness in consumption and domestic demand,” said a DowJones Newswires report. A Bloomberg report said economists “are counting on China to make the deepest interest-rate cuts since 2015 after its top leaders vowed to stimulate the economy.”
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are slightly down and trading around $68.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.21%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the NFIB small business index, and revised productivity and costs. The U.S. data point of the week comes Wednesday with the consumer price index for November, seen coming in at up 2.7%, year-on-year, compared to a rise of 2.6% seen in the October report.
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 $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 the overnight high of $2,703.40 and then at $2,718.00. First support is seen at the overnight low of $2,680.70 and then at $2,650.00. Wyckoff's Market Rating: 6.5.
March silver futures bulls have the overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $32.665 and then at Monday’s high of $32.945. Next support is seen at the overnight low of $32.305 and then at $32.00. Wyckoff's Market Rating: 6.5.
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