(Kitco News) - Gold and silver prices are higher in midday U.S. trading Tuesday. The gold bulls did some bargain hunting and stepped in to buy the morning dip today. A sell off in the U.S. stock indexes today is also friendly for the safe-haven metals. The U.S. dollar index also backed down from its early high, to also help support buying interest in gold and silver. December gold was last up $16.90 at $3,443.50. September silver prices were last up $0.497 at $37.815.
Bloomberg today reports “a chorus of stock market prognosticators at some of Wall Street’s biggest firms is warning clients to prepare for a pullback as sky-high equity valuations slam into souring economic data.” Morgan Stanley, Deutsche Bank AG and Evercore ISI all warned the S&P 500 stock index is due for a near-term drop in the weeks and months ahead. These forecasts follow a strong stock-market rally from April’s lows that pushed prices to record highs last week. Morgan Stanley’s Mike Wilson sees a correction of up to 10% this quarter. Evercore’s Julian Emanuel expects a more substantial decline of as much as 15%. Deutsche Bank’s team, led by Parag Thatte, said a small drawdown in equities is overdue. History shows the months of September and October can be rocky for stock market investors.
The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil futures are lower and trading around $65.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
Technically, December gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $3,509.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at $3,450.00 and then at $3,475.00. First support is seen at this week’s low of $3,397.90 and then at $3,350.00. Wyckoff's Market Rating: 6.5.
September silver futures bulls have the overall near-term technical advantage but are fading fast. A price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $38.51. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $38.00 and then at $38.50. Next support is seen at $37.00 and then at this week’s low of $36.76. Wyckoff's Market Rating: 6.5.
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