Gold prices were slightly lower in early U.S. trading on Tuesday, after hitting a historical high of $2,664.60 overnight, based on December New York Mercantile Exchange futures. Silver prices were moderately higher. Safe-haven buying provided support for both precious metal markets. Technical charts were also bullish for gold and silver, attracting speculators to go long. December gold fell $1.80 to $2,650.70, while December silver rose $0.11 to $31.195.

Today, precious metals received some potentially bullish news as the People's Bank of China cut the reserve requirement ratio for banks by 0.5% to support China's stock and real estate markets. This marks the largest easing move by China since the pandemic. The People's Bank of China's accommodative policy could lead to increased demand for raw materials, including metals, in the world's second-largest economy. Copper prices surged following the news. The People's Bank of China also indicated that it expects another rate cut of 20-50 basis points by the end of the year. Additionally, the People's Bank of China lowered its short-term seven-day reserve requirement ratio from 1.7% to 1.5%. The governor of the People's Bank of China stated that these measures would add $14.2 billion in liquidity to the banking system. Today's headline in Barron's reads: "China's Stimulus Plan is Significant."

Meanwhile, the military conflict between Israel and Hezbollah is heating up rapidly, with Israeli airstrikes on Lebanon this week being called the worst since 2006. This situation keeps gold and silver in safe-haven buying mode.

Asian and European stock indices were mostly higher overnight. U.S. stock indices are set to open close to stable at the New York open.

Today, the main external market saw a slight decline in the U.S. Dollar Index. Crude oil prices on the New York Mercantile Exchange were higher, trading around $72.00 per barrel. The benchmark 10-year U.S. Treasury bond yield was falling, currently at 3.768%.

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U.S. economic data released today includes the weekly Johnson Redbook retail sales report, monthly house price index, S&P CoreLogic Case-Shiller Home Price Index, consumer confidence index, and the Richmond Federal Reserve Bank business survey.

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 solid resistance at $2,750.00. The next downside price objective for the bears is to push futures prices below solid technical support at $2,500.00. First resistance is seen at the overnight contract high of $2,664.60, followed by $2,675.00. First support is seen at this week's low of $2,638.60, followed by $2,625.00. Our market rating: 9.5.

December silver futures bulls have an overall technical advantage in the short term. On the daily bar chart, prices are in a six-week uptrend. The next upside price objective for the silver bulls is to close above solid technical resistance at the July high of $32.46. The next downside price objective for the bears is to close below solid support at $29.00. First resistance is seen at last week's high of $31.755, followed by $32.00. The next support is expected to be at this week's low of $30.67, followed by $30.00.