High Anxiety In Marketplace Propels Gold To 7-Wk. High
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(Kitco News) - Gold prices were ending the U.S. day session solidly higher and pushed to a seven-week high Wednesday, on solid safe-haven demand. There is keen anxiety and risk aversion in the marketplace after U.S. President Donald Trump on Tuesday warned North Korea there would be “fire and fury like the world has never seen” if North Korea keeps threatening the U.S. North Korea responded by saying it may fire a missile toward the U.S. territory of Guam. December Comex gold was last up $16.60 an ounce at $1,279.20. September Comex silver was last up $0.461 at $16.85 an ounce.
The U.S.-North Korea conflict is likely to remain on the front burner of the marketplace for at least a while, and maybe for an extended period of time. That’s bullish for the safe-haven gold market, and also for silver, which many investors also consider to be a safe-haven asset.
World stock markets, including the U.S. stock indexes, sold off Wednesday on the heightened U.S.-North Korea tensions. U.S. T-Bonds and T-Note prices rallied on flight-to-quality buying.
TheU.S. dollar index traded near steady Wednesday and did not have a big reaction to the U.S.-North Korea stare-down. The index has been trending lower all year long and the bears have the strong near-term technical advantage.
The Japanese yen gained against many currencies Wednesday on flight-to-quality buying from Asian investors.
Meantime, Nymex crude oil futures were near steady in afternoon dealings today and trading just above $49.00 a barrel. Oil did not have much of a reaction to the U.S.-North Korea stand-off. This week’s OPEC meeting Abu Dhabi ended with little fanfare and no major proclamations.
In other news, there was another apparent terror attack in France Wednesday. Several were injured when a car rammed several French soldiers. The markets did not react to this news.
Technically, December gold futures bulls have the overall near-term technical advantage and gained more power today. Bulls’ next upside technical objective is pushing prices above chart resistance at $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at this week’s low of $1,257.10. First resistance is seen at today’s high of $1,282.40 and then at $1,290.00. First support is seen at $1,270.00 and then at today’s low of $1,265.90. Wyckoff’s Market Rating: 6.5
September silver bulls and bears are back on a level overall near-term technical playing field as prices closed at a seven-week high close today. Bulls have momentum on their side. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at $17.25. Next support is seen at today’s low of $16.43 and then at $16.205. Wyckoff's Market Rating: 5.0.