(Kitco News) – Gold and silver prices are solidly up in early U.S. trading Tuesday, boosted in part by a wilting U.S. dollar index that overnight hit another two-year low. Both metals see their chart postures as fully bullish, which continues to invite technical buyers. October gold futures were last up $17.10 at $1,988.00. December gold futures prices were last up $0.586 at $29.18 an ounce.
Global stock markets were mostly higher overnight. The U.S. stock indexes are also pointed toward mostly higher openings when the New York day session begins. The Nasdaq hit another record high overnight, with the S&P again hitting a record high Monday. Stock splits and the Dow Index realignment Monday have helped to boost the indexes early this week.
In focus today are manufacturing surveys for August from the major economies. The Euro zone August manufacturing purchasing managers index (PMI) came in at 51.7, which was in line with expectations but a bit below July’s reading of 51.8. A reading above 50.0 suggests growth in the sector. Meantime, China’s Caixin manufacturing PMI for August was 53.1 versus 52.8 in July and 52.5 forecast. The China August PMI is reportedly the best in over 10 years. U.S. PMI numbers are out later this morning, with the August PMI forecast at 53.5.
The Chinese yuan has appreciated to its highest level against the U.S. dollar in more than a year, currently trading around 6.85 to the greenback, due in part to the Chinese economy getting closer to being back to full speed than that of the U.S., following the Covid-19 lockdowns. Higher interest rates in China are also drawing more global investor interest in China assets.
The important outside markets today see Nymex crude oil prices higher and trading around $43.00 a barrel. The U.S. dollar index lower hit a two-year low overnight. The yield on the U.S. Treasury 10-year note is trading around 0.725% today.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the U.S. manufacturing PMI, the ISM report on business, construction spending, the global manufacturing PMI, and domestic auto industry sales.
Technically, the gold bulls still have the firm overall near-term technical advantage, amid recent choppy trading. Prices are still in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,992.50 and then at $2,000.00. First support is seen at the overnight low of $1,963.80 and then at Monday’s low of $1,955.00. Wyckoff’s Market Rating: 7.5
December silver futures bulls have the solid overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the August high of $30.19 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.80. First resistance is seen at the overnight high of $29.235 and then at $29.50. Next support is seen at the overnight low of $28.34 and then at $28.00. Wyckoff’s Market Rating: 8.0.