(Kitco News) - Gold and silver prices aremodestly up in early-afternoon U.S. trading Tuesday, on mild rebounds after goldhit a nearly 1.5-year low and silver a two-year low on Monday. An encouragingsign for the precious metals bulls is that their markets were able to sustaingains today despite a solid rally in the U.S. dollar index to a 14-month high. December gold futures were last up $3.30 an ounce at $1,202.20. September Comex silver was last up $0.063 at $15.045 an ounce.
Thecurrency markets stabilized a bit today, following Monday's and recent priceaction that have seen the world's secondary currencies seriously depreciateagainst the U.S. dollar-especially the Turkish lira. Still, this matter is ofserious concern to traders and investors as they worry about a contagion-typescenario that has gripped currency markets in recent history. Gold and silvertraders have been frustrated their safe-haven metals have not benefitted fromthis situation-at least not yet.
Economicdata released by China shows the world's second-largest economy is seeing itsrate of growth slowing, due in part to the trade war with the U.S. Fixed-investmentspending in China grew by 5.5% in the first half of the year, which is theslowest pace in nearly 20 years. Last year's investment rate was 8.3% for thesame time period. Retail sales in China also slipped a bit in July. This newsis a bit bearish for gold and silver, as China is a leading importer andconsumer of metals.
Theother key outside market today finds Nymex crude oil prices higher and tradingjust above $67.00 a barrel. Oil prices hit a six-week low on Monday and pricesare in a near-term downtrend.
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 $1,226.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,150.00. Firstresistance is seen at $1,212.50 and then at Monday's high of $1,221.40. Firstsupport is seen at Monday's low of $1,198.60 and then at $1,190.00. Wyckoff'sMarket Rating: 1.0
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 $15.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $15.00. Firstresistance is seen at Monday' high of $15.345 and then at $15.50. Next supportis seen at Monday's low of $14.97 and then at $14.75. Wyckoff's Market Rating:1.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff