Due to the easing of market anxiety, gold prices fell back after a moderate rise

Gold prices rose modestly in New York on Tuesday (August 6), and silver prices were close to stabilizing. After a massive sell-off in global stock markets on Monday, the market generally calmed down. Gold prices rose $8.70 to $2,453.10 an ounce in December. Silver prices fell $0.022 to $27.185 in September.

Asian and European stock indexes were mostly higher overnight. Japan's Nikkei closed up 10 percent on Tuesday, recovering most of Monday's 12.4 percent loss. U.S. stock indexes are expected to open higher in New York after hitting a three-month low on Monday. Some technical cues suggest that bears have run out of steam after three weeks of sharp declines. Trading activity for the rest of the week will be particularly important in determining whether the massive sell-off is over.

Fears of a widening war in the Middle East remainforeign exchange trading platformThe focus of attention. After Israel assassinated key military officials from Hamas and Hezbollah last week, Israel is bracing for a major attack from Iran and its proxies. Reports say trucks loaded with surface-to-surface missiles are heading for southern Syria. Weapons convoys have been seen heading from Iran to Syria via Iraq. Reports say Iran is also moving missile launchers.

In other overnight news, the Reserve Bank of Australia maintained monetary policy unchanged, but said inflation remained too high.

Today's major outside markets saw the U.S. dollar index bounce higher after hitting a 4.5-month low on Monday. Nymex crude oil prices are close to stabilizing after hitting a six-month low on Monday and are currently trading around $72.75 a barrel. The benchmark 10-year U.S. Treasury note currently yields 3.865%.

The US economic reports released on Tuesday include the Johnson Redbook weekly retail sales report, the international trade report, and the RCM/TIPP economic optimism index.

(New York Stock Exchange Gold Day Chart)
From a technical standpoint, the December gold bulls have an overall technical advantage in the short term. The bulls' next upside target is to close above the contract high of $2537.70. The bears' next near-term downside target is to push futures prices below the solid technical support level of $2,350.00. The first resistance is seen at the overnight high of $2,459.50, then $2,475.00. The first support is seen at the overnight low of $2434.60, then $2425.00.