(Kitco News)- Gold and silver prices aremodestly higher in early-afternoon U.S. trading Tuesday. Some short covering inthe futures market (the buying back of previously sold, or short, positions)and some perceived bargain hunting in the cash market were seen in quietersummertime trading today, after both markets dropped to 12-month lows recently.December gold futures were last up $2.10 an ounce at $1,219.80. September Comex silver was last up $0.057 at $15.405 an ounce.
Worldstock markets were mostly higher today, to underscore the fact there continuesto be no significant risk aversion in the marketplace. That remains a majorbearish element working against the safe-haven gold and silver markets.
TheU.S. today brought back harsh economic sanctions on Iran that were lifted bythe Obama administration as part of an Iran non-nuclear deal that PresidentTrump cancelled. Trump tweeted today that anyone doing business with Iran willnot be doing business with the U.S. Likely rising tensions between the U.S. andIran could be the next geopolitical flashpoint in the world marketplace, whichcould boost safe-haven gold and silver prices. Reports say Iran could produce anuclear bomb within a year.
Thekey “outside markets” today see Nymex crude oil prices slightly higher andtrading just above $69.00 a barrel. The U.S. dollar index is weaker today butstill not far below its recent 12-month high. The Turkish lira fell to a newlow against the dollar this week, as an example of how the secondary worldcurrencies have been punished by a stronger U.S. dollar.
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Technically,gold bears have the solid overall near-term technical advantage amid a pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at $1,244.70. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,200.00. Firstresistance is seen at Monday’s high of $1,226.00 and then at $1,230.00. Firstsupport is seen at last week’s low of $1,212.50 and then at $1,200.00.Wyckoff's Market Rating: 1.5
Septembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $16.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $15.00. Firstresistance is seen at last week’s high of $15.635 and then at $15.70. Nextsupport is seen at last week’s low of $15.25 and then at the July low of$15.185. Wyckoff's Market Rating: 1.5.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff