(Kitco News) - Gold prices ended the U.S. day session moderately higher Tuesday, on some safe-haven demand amid keener risk aversion in the market place on this day. Short covering in the futures markets and bargain hunting in the cash market were also featured. December Comex gold was last up $8.30 at $1,140.80 an ounce. December Comex silver was last up $0.039 at $14.625 an ounce.

It was a risk-off day in the market place Tuesday, as world stock markets were again under selling pressure following some more downbeat economic news coming out of China. The Chinese government’s official purchasing managers index (PMI) fell to 49.7 in August--the lowest reading in three years. The private Caixin PMI index came in at 47.3, which is a six-year low. A PMI reading below 50.0 suggests contraction.

China’s Shanghai stock index closed down just over 1% Tuesday, which was well up from its daily low. Other Asian and European stock indexes were lower Tuesday. Japan’s Nikkei index was down 3.8% on the day. U.S. stock indexes were also sharply lower in afternoon trading.

The calendar has turned to the month of September. Veteran market watchers know the months of September and October can be unkind to stock market bulls.

The key “outside markets” Tuesday saw Nymex crude oil futures prices sharply lower following big gains scored recently. Nymex crude had surged by over $10 a barrel in less than a week. Tuesday’s corrective pullback in crude is not surprising given the recent strong gains. There are still technical clues crude oil has put in a market bottom. The bottoming out of the crude oil market would be very welcome news for all raw commodity market bulls. The fact that raw commodity sector leader crude oil has shown signs of a market bottom suggests many other raw commodity markets are also likely bottom out, including the precious metals.

The U.S. dollar index was lower Tuesday. The greenback bulls have faded early this week following good gains scored late last week.

In other news, the Euro Zone got some mixed economic data Tuesday. Its jobless rate was pegged at 10.9% in July versus 11.1% in June. A rate of 11.1% was forecast. The Euro Zone August manufacturing PMI came in at 52.3 versus 52.4 in July.

There was a heavy slate of U.S. economic data due for release Tuesday, including the U.S. manufacturing PMI, which came in weaker than expected. However, U.S. construction spending was upbeat. This and some other U.S. data had little impact on the precious metals markets.

The London P.M. gold fix today was $1,142.30 versus the previous London A.M. fixing of $1,141.90.

Technically, December gold futures prices closed near mid-range today. Gold bears still have the overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,169.80. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,116.90. First resistance is seen at today’s high of $1,147.30 and then at $1,150.00. First support is seen at today’s low of $1,133.80 and then at this week’s low of $1,125.00. Wyckoff’s Market Rating: 3.5

December silver futures prices closed near mid-range today and saw tepid short covering in a bear market. Silver bears have the solid overall near-term technical advantage. Prices last week hit a six-year low. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the August high of $15.77 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at today’s high of $14.755 and then at $15.00. Next support is seen at this week’s low of $14.39 and then at $14.25. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 355 points at 230.20 cents today. Prices closed nearer the session low. Copper bears have the solid overall near-term technical advantage. Prices last week hit a six-year low. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the August high of 243.50 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 210.00 cents. First resistance is seen at today’s high of 234.00 cents and then at last week’s high of 236.60 cents. First support is seen at this week’s low of 229.35 cents and then at 227.00 cents. Wyckoff's Market Rating: 2.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff

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