Gold and silver prices rose during early U.S. trading on Tuesday, with gold hovering near historical highs. Safe-haven demand is providing support for these two precious metals. December gold increased by $8.00 to $2,763.90, while December silver rose by $0.319 to $34.32.

Asian and European stock markets experienced mixed gains and losses overnight. At the New York opening, U.S. stock indices opened slightly lower. The market has been relatively calm this week, and it seems that many traders and investors will delay making larger trades. The important U.S. employment report released on Friday may also limit market participation this week. The current market panic appears to be supporting the safe-haven gold and silver markets.

Today, the main external market saw a slight increase in the U.S. Dollar Index. New York Mercantile Exchange crude oil futures prices are currently higher, trading at around $68.25 per barrel. The benchmark 10-year U.S. Treasury bond yield is currently at 4.302%. U.S. bond yields have been rising recently. Concerns about the rising U.S. federal deficit are driving bond yields higher. Reports indicate that investors are "betting that the challenging fiscal conditions after the election may only get worse." Despite the strengthening dollar and rising U.S. Treasury yields, gold remains near historical highs, which may also be due to safe-haven demand for potential further expansion of U.S. government debt.

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U.S. economic data released today includes the weekly Johnson Redbook retail sales report, the Economic Indicators Preview report, the monthly house price index, the S&P CoreLogic House Price Index, and the Consumer Confidence Index.

Technical Analysis of Gold and Silver

Technically, December gold bulls have a strong overall technical advantage in the short term. The next upside price objective for the bulls is to close above the solid resistance level at $2,800.00. The next near-term downside price objective for the bears is to push futures prices below the solid technical support level at $2,650.00. First resistance is seen at the contract high of $2,772.60, followed by $2,800.00. The first support is the overnight low of $2,752.00, followed by this week's low of $2,736.90. Our market rating: 9.0.

December silver futures bulls have a solid short-term overall technical advantage. On the daily bar chart, prices are in a 2.5-month accelerating uptrend. The next upside price objective for the silver bulls is a close above the solid technical resistance level at $37.50. The next downside price objective for the bears is a close below the solid support level at $32.00. First resistance is at $34.50, followed by $35.07. The next support is expected at the overnight low of $33.765, followed by $33.26. Our market rating: 8.0.