Gold, silver see corrective rebounds as sell pressure abates
Temitayo Ayetoto is Businessamlive Reporter.
You can contact her on temitayo.ayetoto@businessamlive.com with stories and commentary.
Prices of gold and silver on Tuesday witnessed corrective rebounds from recent selling pressure in the US, according to report monitored by business a.m., but the near-term technical postures for both metals remain heavily bearish.
December gold futures were up $5.40 an ounce at $1,223.10. September Comex silver was last up $0.147 at $15.495 an ounce.
Global stock markets were mostly higher during Monday and Tuesday transition while U.S. stock indexes are pointed toward firmer openings upon the commencement of New York day session.
The absence of significant risk aversion in the world marketplace continued to persist, working against the safe-haven gold and silver markets.
Also, the U.S. brought back harsh economic sanctions on Iran that were lifted by the former President Barrack Obama’s administration as part of an Iran non-nuclear deal that President Trump terminated. Trump tweeted today that anyone doing business with Iran will not be doing business with the U.S. Likely rising tensions between the U.S. and Iran could be the next geopolitical flash-point in the world marketplace, which could boost safe-haven gold and silver prices. Reports say Iran could produce a nuclear bomb within a year.
Meanwhile, gold bears have the solid overall near-term technical advantage amid a price downtrend according to monitored chart ratings, with gold bulls’ next upside near-term price breakout objective being to produce a close in December futures above solid resistance at $1,244.70.
Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. The first resistance was seen at Monday’s high of $1,226.00 and then at $1,230.00.
September silver futures bears, on the other hand, have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce.
The next downside price breakout objective for the bears is closing prices below solid support at $15.00 and the first resistance is seen at last week’s high of $15.635 and then at $15.70. Next support is seen at last week’s low of $15.25, followed by July low of $15.185.