Price Gains For Gold, Silver as Greenback Backing Down

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closes in 5 hrs. 49 mins.Sep 29, 2020 11:11 NY Time

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Sep 29, 2020 11:11 NY TimeKitco 10AM Silver Fix

Market Indices

(Kitco News, Tues. Sep. 29th, 2020) – Gold and silver prices are higher in early U.S. trading Tuesday. The precious metals markets early this week are being supported by a pullback in the U.S. dollar index after its recent gains. There may be some safe-haven demand creeping back into the metals markets, too. December gold futures were last up $9.70 at $1,891.90 and December Comex silver was last up $0.471 at $24.07 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session slightly lower. Risk appetite is a bit more upbeat early this week. However, the first U.S. presidential debate between Donald Trump and Joe Biden takes place in Cleveland, Ohio Tuesday night. While most agree the debates will change very few voters’ minds, the marketplace remains a bit skittish ahead of the debate, which is likely to produce some fireworks.

The important outside markets early today see the U.S. dollar index down again on a corrective pullback after hitting a two-month high late last week. Nymex crude oil prices are weaker and trading around $40.40. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.65% today.

The U.S. economic data point highlight of the week will be Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook reports, the weekly chain store sales index, the S&P-Core Logic home indexes, and the consumer confidence index. Several Federal Reserve officials also speak today.

Technically, the December gold futures bulls have the overall near-term technical advantage but prices are still trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,925.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,900.00 and then at $1,910.00. First support is seen at the overnight low of $1,880.80 and then at the September low of $1,851.00.

December silver futures bulls have regained the overall near-term technical advantage. However, prices are still trending lower on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at $24.62 and then at $25.00. Next support is seen at the overnight low of $23.51 and then at $23.00