Gold and silver prices are modestly up in early-afternoon U.S. trading Tuesday, on mild rebounds after gold hit a nearly 1.5-year low and silver a two-year low on Monday. An encouraging sign for the precious metals bulls is that their markets were able to sustain gains today despite a solid rally in the U.S. dollar index to a 14-month high. December gold futures were last up $3.30 an ounce at $1,202.20. September Comex silver was last up $0.063 at $15.045 an ounce.
The currency markets stabilized a bit today, following Monday’s and recent price action that have seen the world’s secondary currencies seriously depreciate against the U.S. dollar—especially the Turkish lira. Still, this matter is of serious concern to traders and investors as they worry about a contagion-type scenario that has gripped currency markets in recent history. Gold and silver traders have been frustrated their safe-haven metals have not benefitted from this situation—at least not yet.
Economic data released by China shows the world’s second-largest economy is seeing its rate of growth slowing, due in part to the trade war with the U.S. Fixed-investment spending in China grew by 5.5% in the first half of the year, which is the slowest pace in nearly 20 years. Last year’s investment rate was 8.3% for the same time period. Retail sales in China also slipped a bit in July. This news is a bit bearish for gold and silver, as China is a leading importer and consumer of metals.
The other key outside market today finds Nymex crude oil prices higher and trading just above $67.00 a barrel. Oil prices hit a six-week low on Monday and prices are in a near-term downtrend.
Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,150.00. First resistance is seen at $1,212.50 and then at Monday’s high of $1,221.40. First support is seen at Monday’s low of $1,198.60 and then at $1,190.00. Wyckoff's Market Rating: 1.0
September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at Monday’ high of $15.345 and then at $15.50. Next support is seen at Monday’s low of $14.97 and then at $14.75. Wyckoff's Market Rating: 1.0.