Comex gold futures prices are modestly higher and constructing an upside technical correction and short covering followed by recent selling pressure that on Monday drove prices to a nearly five-month low. The point “outside markets” are in a bullish posture for the precious metals in Tuesday, as the U.S. dollar index is weaker and crude oil prices are firmer.
It’s a quiet and uneventful market place for Tuesday. Overseas stock markets saw some mild profit taking from the Monday’s rallies. Trading activity and market volumes may continue to dwindle as the week progresses, due to the U.S. Thanksgiving holiday on coming Thursday.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, new residential construction, the Richmond Fed business survey, and the S&P/Case-Shiller home price index.
Technically, February gold futures bears still in the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout need to be above solid technical resistance at $1,275.00. Bears' next near-term downside breakout price at below solid technical support at $1,200.00. First resistance is seen at the overnight high of $1,258.20 and then at $1,261.80. First support is seen at $1,240.00 and then at the July low of $1,230.00.
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