(Kitco News) - Gold and silver prices are higher and hit three-week highs in early U.S. trading Tuesday, on follow-through buying following Monday’s strong gains. Notions the U.S. government will be reopening soon have boosted the precious metals markets early this week, as a resumption of U.S. economic data flows may pave the way for a Federal Reserve interest rate cut in December. December gold was last up $23.90 at $4,146.00. December silver prices were up $0.594 at $50.089.
U.S. lawmakers likely have deal to end the longest government shutdown in U.S. history. A restart of the government would see the release of long-delayed U.S. economic data, which is expected to show a worsening outlook and likely be a catalyst for more Fed easing of its monetary policy as soon as the December FOMC meeting. Lower interest U.S. interest rates are bullish for the precious metals, suggesting better global demand for the metals, as well as suggesting the U.S. dollar could depreciate on the foreign exchange market. Gold remains on track for its best annual performance since 1979. Gold and silver prices hit all-time record highs in October.
Global stock markets were mixed overnight. U.S. stock indexes are set to open mixed to weaker in New York.
In overnight news, the U.S. Senate overnight passed a temporary funding measure to end the longest U.S. government shutdown in history, with a vote of 60-40, after a group of centrist Democrats backed the bill. The measure, which keeps most of the government open through Jan. 30 and some agencies through Sept. 30, now needs to be approved by the Republican-controlled House of Representatives, which is expected to consider it on Wednesday. The bill would pay all federal workers who were denied pay during the shutdown and forbid any federal layoffs through Jan. 30. Democrats are criticizing the deal for dropping the party's demand to renew expiring Affordable Care Act subsidies.
President Trump said he “at some point” would reduce the tariff rate on Indian goods, saying the U.S. is getting “pretty close” to a trade deal with India, Bloomberg reported. Trump predicted the nations were “pretty close to doing a deal that’s good for everybody” and said India has stopped buying Russian oil, with purchases "reduced very substantially." Trump said the new U.S. ambassador to India, Sergio Gor, will work to "fortify our country’s bonds, promote investments in key U.S. industries and technologies, increase American energy exports and expand our security cooperation." Trade teams from both India and the U.S. have met multiple times since the easing of tensions and officials in New Delhi have expressed cautious optimism that a deal with the U.S. is in sight. Trump was speaking Monday at the swearing-in for Sergio Gor, the former head of his personnel office who is now becoming the U.S. ambassador to India.
The National Federation of Independent Businesses (NFIB) reports its Small Business Optimism Index in the U.S. fell to 98.2 in October 2025, the lowest in six months, from 98.8 in September and compared to forecasts of 98.3. "Optimism among small businesses declined slightly as owners report lower sales and reduced profits. Additionally, many firms are still navigating a labor shortage and want to hire but are having difficulty doing so, with labor quality being the top issue for Main Street," NFIB Chief Economist Bill Dunkelberg said. Meanwhile, 32% of all small business owners reported job openings they could not fill, unchanged for the second consecutive month.
The key outside markets today see the U.S. dollar index slightly lower. Crude oil prices are slightly firmer and trading around $60.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.12%.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, December gold futures bulls’ next upside price objective is to produce a close above solid resistance at $4,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at $4,175.00 and then at $4,200.00. First support is seen at $4,100.00 and then at $4,050.00. Wyckoff's Market Rating: 7.0.
December silver futures bulls have the firm overall near-term technical advantage and their next upside price objective is closing prices above solid technical resistance at the record high of $53.765. The next downside price objective for the bears is closing prices below solid support at this week’s low of $48.235. First resistance is seen at $51.50 and then at $52.00. Next support is seen at $50.00 and then at $49.00. Wyckoff's Market Rating: 7.5.
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