(Kitco News) - Gold prices are sharply up and at a two-week high in midday U.S. trading Tuesday, on chart-based buying and bullish fundamentals. Reports of better demand from China’s central bank and potential fresh China economic stimulus are boosting the yellow metal. Safe-haven demand amid a still-turbulent Middle East and political troubles in South Korea is also bullish for gold. February gold was last up $33.30 at $2,719.10 and March silver was down $0.086 at $32.525.
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 firmer and trading around $69.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
Technically, February gold bulls have the firm overall near-term technical advantage. Bulls are working on a price uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,826.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,629.70. First resistance is seen at $2,730.00 and then at $2,748.00. First support is seen at $2,700.00 and then at the overnight low of $2,680.70. Wyckoff's Market Rating: 7.0.
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 today’s high of $32.795 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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