Gold and silver prices are both experiencing declines in midday U.S. trading on Tuesday. The downturn is attributed to profit-taking and position adjustments as investors prepare for a busy week of U.S. economic data releases. September, historically known for its market volatility, marks the beginning of a potentially turbulent period for financial markets. The Wall Street Journal aptly headlines, “Markets’ summer vacation is over.”
As of midday, December gold futures are down $8.80, trading at $2,518.70. December silver futures have seen a more pronounced drop, down $0.806 at $27.925.
U.S. stock indices are also reflecting negative sentiment, showing solid losses. Key economic reports this week include the monthly employment situation report from the Labor Department, set to be released Friday morning. Additionally, the Job Openings and Labor Turnover Survey (JOLTS) report will be published on Wednesday.
In the broader market context, the U.S. dollar index has strengthened. Crude oil prices have fallen sharply, hitting a seven-month low and trading around $71.00 per barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 3.852%.
Technical Analysis
For gold, the December futures remain technically bullish in the near term. The next significant resistance level is $2,600.00, which bulls aim to surpass. Conversely, bears are targeting a decline below the technical support level of $2,475.00. Immediate resistance is at today’s high of $2,529.50, followed by $2,550.00. Support levels are at today’s low of $2,504.40 and then at $2,500.00. Wyckoff’s Market Rating stands at 8.0.
Silver futures, however, have lost their prior near-term technical advantage. The uptrend observed on the daily bar chart has been reversed. The immediate goal for silver bulls is to achieve a closing price above $30.00, while bears are targeting a decline below the August low of $26.885. Key resistance levels are at $29.00 and today’s high of $29.35. Support levels are at $28.00 and $27.50. Wyckoff’s Market Rating is currently 5.0.
