Gold Bulls Rolling Amid Risk Aversion In Marketplace
Editor's Note: Kitco readers, have your say! Check out our newest feature – KITCO CHAT! – where you can share your comments and ask questions directly to us.
(Kitco News) - Gold prices were ending the U.S. day session higher and scored a nearly two-month high Thursday. More safe-haven demand was featured amid the ongoing stare-down between the U.S. and North Korea. Look for gold to continue to be supported in the near term, as this crisis is not likely to just disappear. December Comex gold was last up $11.30 an ounce at $1,290.50. September Comex silver was last up $0.212 at $17.07 an ounce.
The gold market bulls are now within easy striking distance of the psychologically important $1,300.00 level.
Silver prices are following on the coattails of gold and also scored a nearly two-month high Thursday. Silver will continue to benefit if gold keeps trending up.
World stock markets were mostly lower again Thursday, amid the keener risk aversion. If the stock indexes continue to back off, gold and silver are likely to see buying interest from that money flowing out of equities.
North Korea kept up its war talk Thursday by again threatening to unleash an “enveloping fire” in the coming weeks, with a specific target being Guam. On Tuesday U.S. President Trump said the world’s strongest military could unleash “fire and fury” on North Korea if that rogue nation keeps threatening the U.S. with nuclear missiles. The U.S. secretary of defense and secretary of state on Wednesday backed up Trump’s statement. Japan on Thursday said it would shoot down any North Korean missiles launched at Guam.
The U.S. dollar index is modestly lower in afternoon U.S. trading Thursday. The greenback has not seen much of a reaction to the U.S.-North Korea matter.
Meantime, Nymex crude oil futures were lower early this afternoon. The U.S.-North Korea tensions have not significantly impacted crude oil, either. That’s a big change from years past, when crude prices would be seriously impacted by heightened geopolitical tensions. Crude prices have paused the past week, but prices are still in an uptrend from the June low and the bulls still have the overall near-term technical advantage.
Technically, December gold futures bulls have the firm overall near-term technical advantage. 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 $1,300.00 and then at $1,307.00. First support is seen at Thursday’s low of $1,280.30 and then at $1,275.00. Wyckoff’s Market Rating 7.0
September silver bulls now have the overall near-term technical advantage. The next upside price breakout objective is closing futures prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.25. First resistance is seen at $17.25 and then at $17.50. Next support is seen at Thursday’s low of $16.85 and then at $16.50. Wyckoff's Market Rating: 6.0.