(Kitco News) - Gold prices are moderately higher and hit a two-week high Tuesday, on a safe-haven boost after President Trump said he has fired a Federal Reserve governor. Silver prices are just a tad weaker. December gold was last up $16.50 at $3,434.20. September silver prices were down $0.028 at $38.69.
President Trump late Monday moved to fire Federal Reserve Board Governor Lisa Cook following allegations she falsified mortgage documents, citing "sufficient cause" to fire her. Cook fired back and said Trump has no authority to fire her, and she won't quit, with her lawyer planning to take "whatever actions are needed to prevent" Trump's "illegal action." Forcing out Cook would give Trump an opportunity to secure a four-person majority on the Fed's seven-member Board of Governors. Global stock and financial markets were not seriously rattled by the news, but neither did they take it in stride. Gold saw a mild safe-haven boost. Most Asian and European markets sold off a bit. U.S. Treasury market yields modestly up-ticked and the U.S. dollar index weakened. U.S. stock indexes are trading near steady at midday.
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 $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $3,319.20. First resistance is seen at $3,450.00 and then at $3,475.00. First support is seen at the overnight low of $3,396.10 and then at last week’s low of $3,353.40. Wyckoff's Market Rating: 7.0.
September silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $39.91. The next downside price objective for the bears is closing prices below solid support at the July low of $36.28. First resistance is seen at last week’s high of $39.09 and then at $39.91. Next support is seen at today’s low of $38.33 and then at $38.00. Wyckoff's Market Rating: 7.0.
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