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Gold Up, Hits 6-Week High, on Near-Term Technical Strength

(Kitco News) - Gold prices ended a subdued U.S. trading session moderately up and hit another six-week high Monday. Chart-based buying was again featured in gold today, as prices are in a near-term uptrend. December Comex gold was last up $6.60 at $1,162.40 an ounce. December Comex silver was last up $0.042 at $15.86 an ounce.

World markets were quieter and uneventful Monday. Japan’s markets were closed for a holiday. The Columbus Day holiday Monday kept most U.S. markets squelched as the U.S. government was closed and no U.S. economic data was released.

Discussion in the marketplace remains on U.S. Federal Reserve monetary policy and just when the Fed might raise U.S. interest rates for the first time in several years. Recent weaker U.S. economic data (namely the employment reports of the past two months) have led many market watchers to believe the Fed won’t raise interest rates this year. This growing notion has been bullish for stocks, most raw commodity markets and U.S. Treasuries, but has been bearish for the U.S. dollar.

The outside markets on Monday saw the U.S. dollar index slightly lower and at a three-week low. The greenback bears still have technical momentum as prices have been trending lower for two weeks. Crude oil prices traded sharply lower Monday on a corrective pullback after hitting a 2.5-month high of $50.92 a barrel Friday. The Russian military action in Syria had helped to give the geopolitically sensitive oil markets a boost recently.

Technically, December gold futures prices closed near mid-range today and hit a six-week high. The bulls showed follow-through strength from Friday’s bullish weekly high close, which now suggests prices can trend at least sideways, if not sideways to higher in the near term. Gold bulls now have the slight 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 $1,129.60. First resistance is seen at this week’s high of $1,169.80 and then at $1,175.00. First support is seen at today’s low of $1,154.30 and then at $1,150.00. Wyckoff’s Market Rating: 5.5

December silver futures prices closed nearer the session low today. The silver market bulls still have the slight near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at last week’s high of $16.115 and then at $16.25. Next support is seen at today’s low of $15.765 and then at $15.50. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed down 20 points at 241.20 cents today. Prices closed nearer the session low today. Copper bears still have the overall near-term technical advantage. However, prices have been trending higher for the past two weeks. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the September high of 249.30 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of 220.25 cents. First resistance is seen at last week’s high of 243.75 cents and then at 245.00 cents. First support is seen at 240.00 cents and then at 237.50 cents. Wyckoff's Market Rating: 3.0.

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

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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