Gold and silver prices ended the U.S. day session higher and hit two-week highs Tuesday. Gold bulls are once again knocking on the door of the key $1,300 level. Heightened geopolitical tensions this week have prompted more safe-haven demand for gold, and to a lesser degree silver. A depreciating U.S. dollar against the other major currencies early this week is also a bullish element for the precious metals markets. Short-covering in the futures markets by weak-handed bears is further lifting gold and silver prices.
Geopolitical worries have ratcheted up another notch on reports U.S. President Donald Trump will stop at the North Korea-South Korea demilitarized zone to deliver a strong anti-North Korea speech, during his Asia trip next week. Also, U.S. Defense Secretary James Mattis reportedly told his Army officers to be ready, in case U.S.-North Korea negotiations fail.
Meantime, the European Union is worried and its stock markets are shaky regarding Catalonia possibly seceding from Spain. The Catalan regional president gave a speech Tuesday, in which he said it is his intention to at some point separate Catalonia from Spain, per the recent voter referendum.
The U.S. dollar index was lower again Tuesday, on a corrective pullback from recent gains. There are still some signals the dollar index has put in a near-term low.
The other key outside market on Tuesday saw Nymex crude oil futures prices solidly higher and back above the key $50.00 level. Reports said Saudi Arabia plans to cut its crude oil exports in November.
Traders and investors are looking ahead to what is arguably the most important U.S. data point of the week: Wednesday afternoon's minutes from the latest FOMC meeting. Most of the marketplace now expects the Federal Reserve to raise interest rates by 0.25% at the December FOMC meeting.
Technically, December gold futures prices closed nearer the session high. Bears still have the slight overall near-term technical advantage, but the bulls are having a very good week, so far. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week's low of $1,262.80. First resistance is seen at today's high of $1,296.70 and then at $1,300.00. First support is seen at today's low of $1,284.60 and then at this week's low of $1,277.70.
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