Modest price pressure on gold, silver as stock markets stabilize

Gold and silver futures prices modestly lower in early U.S. trading Tuesday. Global stock markets have stabilized Tuesday after hitting some fresh Covid turbulence on Monday, and that is keeping buyers of the safe-haven metals tentative so far today. February gold futures were last down $3.80 at $1,879.00 and March Comex silver was last down $0.329 at $26.05 an ounce.

Global stock markets were mixed overnight, with Asian shares mostly down and European shares mostly firmer. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The global marketplace is still a bit edgy following the weekend news of a newly discovered and more easily transmissible strain of Covid-19 in the U.K. Several countries have banned travel to and from Britain. Some health experts said they believe the current Covid vaccines could be effective on the new mutation of the virus. However, it’s too soon to tell if the current Covid vaccines will be as effective on the new strain as on the original form of the virus. The bottom line for the marketplace is keener uncertainty that leads to risk aversion.

Reports overnight said the U.K. and the European Union may be getting closer on reaching a smooth Brexit agreement.

The U.S. dollar index is higher in early U.S. trading on a corrective rebound after hitting a 2.5-year low last week. The other important outside market sees February Nymex crude oil futures prices lower and trading around $47.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.938%.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the third estimate of third-quarter GDP, the Richmond Fed business survey, existing home sales and the consumer confidence index.

Technically, the February gold futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the November high of $1,973.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,820.00. First resistance is seen at the overnight high of $1,889.40 and then at $1,900.00. First support is seen at the overnight low of $1,870.50 and then at Monday’s low of $1,859.00. Wyckoff’s Market Rating: 6.0

March silver futures bulls have the firm overall near-term technical advantage amid a near-term price uptrend in place on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at the overnight high of $26.815 and then at $27.00. Next support is seen at the overnight low of $25.74 and then at $25.50. Wyckoff’s Market Rating: 6.5.