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(Kitco News) – Gold and silver prices are lower in early US trading on Tuesday. Amid a lack of major fundamental news in the market today, traders are focusing on key outside markets that are in an overall bearish position for the metals: a higher US Dollar Index and crude oil prices. on the decline. The rally in US equity indices which hit multi-month highs on Monday is also taking away traders’/investors’ interest in the long side of the precious metals markets. October gold futures were last down $7.20 at $1,780.60. September Comex silver futures were last down $0.202 at $20.07 an ounce.
Global stock markets were mixed to strengthen overnight. US stock indices are pointing to slightly lower openings at the start of the day’s session in New York. Corporate earnings reports are in the spotlight this week. Risk appetite in the market this week is less than robust after pessimistic economic conditions out of China prompted China’s central bank to ease monetary policy. Additionally, a weaker Empire State US manufacturing report on Monday heightened concerns about a looming US recession.
Major outside markets are seeing Nymex crude oil prices rise today and trading around $90.25 a barrel. According to reports, Iran may take steps in its nuclear program to ease international sanctions against Iranian oil. The US Dollar Index is higher at the start of US trading. The yield on the 10-year US Treasury bond reached 2.802%.
US economic data due out on Tuesday includes the Johnson Redbook and chain store weekly sales indices, new residential construction, industrial production and capacity utilization.
Technically, October gold futures have the overall short-term technical advantage. An upward price trend on the daily bar chart has been reversed. The Bulls’ next upside price objective is to produce a close above strong resistance at the August high of $1,814.40. Bears next short-term downside price objective is to push futures prices below strong technical support at $1,725.00. First resistance is seen at the overnight high of $1,787.60 and then at $1,800.00. First support is seen at $1,775.00 and then at the August low of $1,759.70. Wyckoff Market Rating: 3.5.
September silver futures have the overall short-term technical advantage. The next upside price objective for the silver bulls is to close prices above the strong technical resistance at $21.00. The next downside price objective for the bears is to close prices below the strong support at $19.00. First resistance is seen at the overnight high of $20.25 and then at $20.50. The next support is seen at $19.745 and then at $19.47. Wyckoff Market Rating: 3.5.
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