Gold and silver prices saw modest declines in early U.S. trading on Tuesday, primarily due to routine downside price corrections and profit-taking by short-term traders. Additionally, weaker crude oil prices and a slight increase in U.S. Treasury yields contributed to the downward pressure on these precious metals. As of the latest reports, December gold futures have decreased by $7.80, settling at $2,547.40, while September silver futures have dropped by $0.032 to $29.975.
Overnight, Asian and European stock markets showed mixed performances, and U.S. stock indexes are expected to have varied openings as the New York day session commences. Despite these fluctuations, U.S. stock indexes have rebounded strongly from their lows in August. A key focus for the stock market this week is the upcoming earnings report from Nvidia, scheduled for Wednesday.
In broader markets, the U.S. dollar index has experienced a slight decline. Meanwhile, Nymex crude oil prices are down, trading around $77.00 per barrel. The yield on the benchmark 10-year U.S. Treasury note is currently at 3.848%.
Tuesday’s U.S. economic data releases include the weekly Johnson-Redbook retail sales report, the monthly house price index, the S&P CoreLogic home price indexes, the consumer confidence index, and the Richmond Fed business survey.
Technical Analysis of Gold and Silver Markets
From a technical standpoint, December gold futures remain bullish in the near term, with strong overall technical momentum. For the bulls, the next target is to close above the solid resistance level at $2,600.00. Conversely, the bears will aim to push prices below the significant support level at $2,475.00. Key resistance levels are currently at the overnight high of $2,554.50 and this week’s high of $2,563.20. Key support levels are at the overnight low of $2,538.50 and subsequently at $2,525.00.
Similarly, September silver futures exhibit a bullish trend in the near term on the daily bar chart, with prices maintaining an upward trajectory. The silver bulls’ next goal is to close above the solid technical resistance at $31.00. On the downside, the bears’ objective is to push prices below the firm support level at $28.00. Immediate resistance is identified at this week’s high of $30.225, followed by $30.50. Support levels are seen at this week’s low of $29.68 and further down at $29.335.
This market snapshot reflects the current volatility and potential future movements in the precious metals market as traders and investors navigate both technical indicators and broader economic factors.