Gold paused in the middle of a bull market

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(Kitco News) – The price of gold is down slightly at the start of the US trading session on Tuesday. The yellow metal sees a normal downward correction amidst a strong upward price trend on the daily bar chart. December gold futures were down $ 3.00 an ounce to $ 1,528.70. In December, Comex's silver prices were down $ 0.091 to $ 18.62 an ounce.

The Asian and European stock markets have for the most part grown in day-to-day trading. US stock indexes show slightly higher opening at the start of the New York daily session. The attitude of traders and investors is a little more optimistic today, but it is not yet close to risk.

Last week's meeting in Washington, DC, with Chinese trade representatives in Washington, changed their mindset. Traders initially felt that the early departure of the Chinese trade delegation to his country was a sign that the negotiations had not worked well. The Chinese had to visit American farms, but the visits were brutally canceled. However, the comments of both parties since last Friday are very optimistic and trade negotiations must continue. The market is considering this situation as a positive element for a possible trade agreement between the United States and China.

The specter of a very weak collective economy of the European Union continues to blur the European market. Dour's manufacturing figures released in Germany on Monday suggest that the Eurozone's biggest economy is heading into recession.

The head of the Chinese central bank said Tuesday that the People's Bank of China would not follow the easing measures of monetary policy followed by the central banks of the West and that the interest rates China's current situation was appropriate.

Nymex crude oil prices are lower and are trading around $ 58.00 a barrel. The other key foreign market today sees a slight rise in the US dollar index.

US economic data to be released on Tuesday includes the weekly retail sales reports from Goldman Sachs and Johnson Redbook, the monthly house price index, the S & P-Case-Shiller home price index, Richmond Fed survey and the Consumer Confidence Index.

On the technical side, gold bullion has a strong short-term overall technical advantage, as a four-month bullish trend on the daily bar chart remains in place. Bulls next bullish target is to produce a futures contract in October, above a strong September high of $ 1,566.20. Bears' next short-term price reduction target will push December futures prices below strong technical support to September's low of $ 1,490.70. The first resistance is observed at Monday highs, at $ 1,534.40, then at 1,540.00. The first support is found at Monday's low of $ 1,517.90 and then at $ 1,510.00. Wyckoff Market Rating: 7.5

The December silver futures have a strong overall short-term technical advantage. A four-month uptrend is in place on the daily bar chart. The next bullish price target of the Silver Bulls is the closing price, above a strong technical resistance, at $ 19.00 an ounce. The next downside price target for bearish futures is the lower closing price of solid support at September low of $ 17.47. The first resistance is observed at the highest overnight rate of $ 18.81, then at $ 19.00. The next support is visible at the lowest overnight rate of $ 18,515 then $ 18.25. Wyckoff Market Estimate: 7.0.