Gold and silver prices were close to stable during the early U.S. session on Tuesday. Precious metal traders are waiting for new fundamental news to drive price action. December gold rose by $1.00 to $2,666.60, and December silver increased by $0.024 to $31.34.
Asian and European stock markets fluctuated overnight. When New York opened, U.S. stock indices started with mixed results. S&P 500 futures hit a historical high on Monday. The rebound in the U.S. stock market is a bearish factor for precious metals as they are a competing asset class. The stock market rebound also indicates a decrease in overall market risk aversion, which is unfavorable for safe-haven metals.
Earlier this week, reports indicated that Iran sent a message to the U.S. through a third country, stating that it would not respond if Israel's response to Iran's recent missile launch towards Israel is limited to specific targets. Broker SP Angle stated this morning that this message "seems to be an attempt to pressure Israel through the U.S. and persuade Israel not to target Iran's oil terminals. If Israel attacks Iran's oil facilities, then Iran will attack Israel's natural gas production, potentially triggering a new energy crisis." Additionally, The Washington Post reported that Israel told the U.S. it would only target Iran's military objectives. Crude oil prices plummeted today, trading at around $70.25 per barrel, which is a bearish factor for the raw materials commodity sector, including metals. OPEC revised down its global oil demand growth forecast on Monday, and the International Energy Agency also revised it down today.
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Another key external market today considers the U.S. Dollar Index a bit low. The benchmark 10-year U.S. Treasury yield is currently at 4.081%.
U.S. economic data released today includes the Johnson Redbook Weekly Retail Sales report and the Empire State Manufacturing Survey. Several Federal Reserve officials also gave speeches today.
Technically, December gold bulls have a solid overall technical advantage in the short term. The next upside price objective for the bulls is to form a closing price above the solid resistance level at the contract high of $2,708.70. The next near-term downside price objective for the bears is to push futures prices below the solid technical support level at $2,600.00. First resistance is seen at this week's high of $2,684.20, followed by $2,700.00. The first support is at today's low of $2,654.40, then at $2,645.00. Our market rating: 8.5.
December silver futures bulls have an overall technical advantage in the short term. On the daily bar chart, prices are still in a nine-week uptrend. The next upside price objective for bullish silver is a close above the solid technical resistance at the May high of $33.50. The next downside price objective for the bears is a close below the solid support level at $30.00. First resistance is seen at this week's high of $31.75, followed by $32.00. The next support is expected at $31.00, then at last week's low of $30.345. Our market rating: 7.0.