(Kitco News) - Gold and silver prices are again posting good gains and hit record highs in early U.S. trading Tuesday. Safe haven bidding is featured this holiday-shortened trading week, amid heightened geopolitical tensions—namely U.S.-Venezuela tensions. February gold was last up $48.50 at $4,518.10. March silver prices were up $1.12 at $69.685.
New records: Gold prices overnight climbed to a fresh record high of $4,530.80 an ounce, basis February Comex futures. March Comex silver futures also hit a record high of $70.155 an ounce overnight. Gold marked its 50th record-breaking session this year. So far this year, gold has soared 70%, on track for its strongest annual gain since 1979. Silver is up over 130% this year.
Trump warns Venezuelan leader: Don’t mess with the U.S. President Trump warned Venezuelan President Nicolas Maduro not to challenge the United States and vowed to keep oil seized from a supertanker. Trump declined to say if he’s seeking to oust Maduro, saying, "That's up to him" when asked if he would try to push Maduro out. The U.S. has stepped up its blockade of tankers going to and from Venezuela, boarding a non-sanctioned ship and pursuing another oil tanker off the coast of Venezuela. More than a dozen tankers have loaded oil off Venezuela’s coast since the Trump administration intensified efforts to curb Caracas’ crude revenue by targeting sanctioned vessels, Bloomberg reported. Since Dec. 11, roughly 14 vessels have loaded and at least six of them were under sanctions, according to data from maritime intelligence firm Kpler. The majority of the loadings took place at the ports of Bajo Grande and Puerto Jose, said Bloomberg.
Russia continues to attack Ukraine as peace talks drag on. Russian forces launched a missile and drone attack across Ukraine, killing civilians and hitting energy targets as negotiators pressed ahead with talks to end the nearly four-year war. President Volodymyr Zelenskiy said the strikes on several Ukrainian regions, with some 650 drones and more than 30 missiles, took place “in the midst of negotiations,” as Kyiv’s team returned home from talks with U.S. officials in Florida. “This Russian strike sends an extremely clear signal about Russia’s priorities,” Zelenskiy said on Tuesday on X and as reported by Bloomberg. He slammed the attack, taking place “ahead of Christmas, when people simply want to be with their families, at home, and safe.” On the diplomatic front, US President Donald Trump, whose administration is placing Kyiv under mounting pressure to agree to a peace deal with Russia, said the effort was moving ahead. Talks are “going along,” the US leader told reporters in Florida in response to a question on whether three-way discussions between Washington, Kyiv and Moscow may be the next step.
The key outside markets today see the U.S. dollar index lower. Crude oil prices are near steady and trading around $58.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.15%.
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, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at $4,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,300.00. First resistance is seen at the overnight record high of $4,530.80 and then at $4,550.00. First support is seen at the overnight low of $4,479.80 and then at $4,450.00. Wyckoff's Market Rating: 9.5.
March silver futures bulls’ next upside price objective is closing prices above solid technical resistance at $75.00. The next downside price objective for the bears is closing prices below solid support at $65.00. First resistance is seen at the overnight record high of $70.155 and then at $71.00. Next support is seen at the overnight low of $68.965 and then at this week’s low of $67.47. Wyckoff's Market Rating: 9.5
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