(Kitco News) - Gold and silver futures prices are firmer in early U.S. trading Tuesday, on important follow-through strength after big gains posted Monday. Gold hit a seven-week high overnight. The metals are seeing support from a seriously depreciating U.S. dollar on the foreign exchange market that saw the dollar index hit a 2.5-year low Monday.
The specter of rising and possibly problematic price inflation on the horizon is also bullish for the metals. February gold futures were last up $5.00 at $1,951.80 and March Comex silver was last up $0.236 at $27.595 an ounce.
Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Monday’s price action in the U.S. stock indexes hints the bulls are now exhausted. The S&P 500 and Nasdaq pushed to new record highs early on but by the end of the day finished near their daily lows, scoring bearish “outside days” down on the daily bar charts. And if there is follow-through selling pressure Tuesday, then more significantly bearish “key reversals” down would be confirmed in both markets, which would be one technical clue that market tops are in place. Keep in mind these potentially bearish chart patterns have occurred in the very recent past, only to see the stock indexes push to new highs.