Gold and silver futures prices are posting decent gains Tuesday morning, following the strong losses posted Monday. The precious metals bulls are now trying to steady their markets and working to prevent more serious chart damage from being inflicted. December gold futures were last up $21.00 at $1,875.00 and December Comex silver was last up $0.44 at $24.145 an ounce.
The gold market Monday saw strong losses that were the worst in seven years and pushed prices to nine-week lows. Gold market bulls on Tuesday are focusing more on the economic impact of record-setting monetary stimulus measures that have been enacted by central banks over the past six months, and probably more stimulus in the coming months. This scenario seems to be inviting some serious price inflation down the road—especially as recovering major world economies shift into higher gears in the coming months.
Global stock markets were mostly up overnight, whiled U.S. stock indexes are also mixed to firmer ahead of the New York day session. The marketplace euphoria is not quite as strong Tuesday, following Monday’s news that a successful vaccine has been found for Covid-19. While that news is certainly a bright light in a dark period for the world, the markets on Tuesday are realizing there is still a very rough patch that lies ahead in dealing with the pandemic, both for major economies and human health.
U.S. Treasury bond and note yields have risen to eight-month highs this week, on the prospects for a solid U.S. economic recovery in 2021. The yield on the benchmark 10-year U.S. Treasury note is currently fetching 0.94%.
The U.S. dollar index is slightly higher early today on a corrective bounce after hitting a nine-week low Monday. The other important outside market sees crude oil prices higher and trading around $40.50 a barrel.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, and the IBD/TIPP economic optimism index.
Technically, the December gold futures bulls still have the overall near-term technical advantage but are fading this week. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at this week’s high of $1,966.10. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at Monday’s low of $1,848.00. First resistance is seen at the overnight high of $1,888.90 and then at $1,900.00. First support is seen at the overnight low of $1,858.90 and then at $1,848.00. Wyckoff’s Market Rating: 6.0
December silver futures bulls have the overall near-term technical advantage but have faded this week. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the October low of $22.625. First resistance is seen at the overnight high of $24.49 and then at $25.00. Next support is seen at this week’s low of $23.60 and then at $23.00.