Gold prices break; Bulls remain strong

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(Kitco News) – Gold prices approached steady and paused in US trade on Tuesday, after scoring another six years high in the days. Demand for a safe haven has been discussed in recent sessions amid an escalating trade war from the US and China. Gold futures last December were up $ 0.10 per ounce at 1,476.60. Comex silver prices in September rose $ 0.037 to $ 16.43 per ounce.

Asian and European stock markets were mixed overnight. Asian stock markets were down and European stock indices were higher. US stock indices that were recovered following early-night losses and are set to open higher as the day in New York begins. The US stock indices have suffered severe technical damage in the short term, suggesting that they have at least set the near-term long-term peaks. Remember that the historically turbulent stock market months of September and October are just around the corner.

News late Monday that the United States labeled China as a currency manipulator that basically pushed the world stock markets still lower, following Monday's steep losses. However, China's central bank set its currency, the yuan, the US dollar exchange rate to 6.9683, which was 0.7% lower than Monday's fix. The yuan depreciated to an 1[ads1]1-year low against the US dollar on Monday at 7.1087 to the dollar. The move on Monday led to ideas China has thrown in the towel on any trade agreement with the US coming anytime soon. Tuesday's yuan fix below 7, however, gave a pause to those who believe the Chinese government will allow the yuan to continue weakening against the US dollar. China's central bank also knows the disadvantage of letting the yuan fall in value – one is capital flight out of China, which is very likely to have already happened.

President Trump announced last week that the United States will impose a further 10% tariff on Chinese imports to US China on September 1, in turn, announcing that they will suspend the purchase of US agricultural products.

Many market makers now expect that the US and China trade wars that are being resurfaced will have the opportunity for the Federal Reserve to cut US interest rates soon. Speaking from Federal Reserve officials in the coming days will gain extra control from the market. St. Louis Fed President James Bullard talks to the National Economics Club later today.

The most important "outside markets" today see Nymex crude oil prices firmer and trading just over $ 55.00 a barrel. The US dollar index is trading firmer today.

U.S. Financial data to be released Tuesday include weekly sales reports from Goldman Sachs and Johnson Redbook, IBD / TIPP's Economic Optimism Index.

Technically, gold bulls have strong general technical advantage in the short term. A 10 week old trend is in place in the daily bar chart. The Bulls' next upside target is to produce an end to October futures over solid resistance of $ 1,500.00. Bears & # 39; s next long-term downward price trend is to push future prices for December under solid tech support to $ 1,425.00. First resistance is seen at today's high of $ 1,486.80 and then at $ 1500.00. First aid is seen at a minimum accommodation of $ 1,468.20 and then at $ 1,454.00. Wyckoff's market valuation: 8.5

Silver futures bulls in September have the solid general technical advantage near term. The Silver Bulls' next upside prize giving goal is to close prices above solid technical resistance at the July high of $ 16,685 ounces. The next target for the Bear trend is to close prices under solid support at last week's lowest $ 15,935. First resistance is seen at Monday's high of $ 16.59 and then at $ 16,685. Next support is seen at $ 16.25 and then at Monday's lowest $ 16,135. Wyckoff's market valuation: 7.5.