(Kitco News) – Gold and silver prices fell sharply in early US trading on Tuesday, as a strong US dollar and rising US Treasury yields sent metals bulls to take shelter today. The December gold price decreased by $13.30 to $1953.80 and the December silver price decreased by $0.617 to $23.94.

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The risk appetite of traders and investors is pessimistic to start a short trading week due to the holiday in the United States, as China announced more pessimistic economic data. The Caixin Services Purchasing Managers’ Index (PMI) came in at 51.8 in August versus 54.1 in July and was below the forecast of 53.5. The Caixin Composite PMI came in at 51.7 vs. July’s 51.9.

Asian stock markets mostly fell in overnight trading. US stock indices are showing lower openings as the New York session begins. History shows that September and October can be difficult months for stocks and financial markets.

Meanwhile, the Reserve Bank of Australia kept its monetary policy unchanged but said that further rate hikes may be necessary.

Today, major foreign markets are seeing a strong rally in the US dollar, reaching its highest level in six months. As for the crude oil futures prices in “NYMEX”, they are slightly weaker and are trading at $85.25 per barrel. The benchmark yield for the 10-year US Treasury note is currently around 4.22%.

US economic data due for release on Tuesday includes Employment Trends, IDB/TIPP Economic Optimism, Manufacturer Shipments and Inventories.

Gold 24-hour live chart (Kitco Inc.)

Technically, gold futures bears have an overall technical advantage in the near term. The next upside price target for the bulls is to close the December futures contract above the strong resistance at $2000.00. The next downside price target in the near term is to push futures prices below the strong technical support at the August low of $1913.60. The first resistance is seen at the overnight high of $1972.60 and then at last week’s high of $1980.20. The first support is located at $1,950.00 and then at $1,940.10. Wyckoff Market Rating: 3.5

Silver 24-hour live chart (Kitco Inc.)

The silver bulls have lost their overall near-term technical edge after the sell-off on Friday and today. The price’s bullish trend on the daily chart has been invalidated. The next upside price target for silver bulls is to close December futures prices above strong technical resistance at the July high of $25.82. The next downside price target for the bears is to close prices below the strong support level of the August low at $22,585. The first resistance is seen at today’s high of $25.655 and then at $25.00. The next support is at today’s low at $23,815 and then at $23.50. Wyckoff Market Rating: 5.0.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect his views Kitco Metals Company The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot or the author guarantee this accuracy. This article is for informational purposes only. This is not a solicitation for any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article shall not be liable for losses and/or damages arising from the use of this publication.

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