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Gold Down On Continued Scant Risk Aversion, But Iran Sanctions Could Provide Spark

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(Kitco News) - Gold and silver prices were moderately lower in lackluster early-afternoon U.S. trading Monday. Summertime trading conditions has many market-makers either on vacation or thinking about theirs upcoming. Selling pressure today is related to a strong U.S. dollar. Gold is trading not far above last week’s 12-month low. December gold futures were last down $5.50 an ounce at $1,217.70. September Comex silver was last down $0.112 at $15.35 an ounce.

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The U.S. on Tuesday is bringing back economic sanctions on Iran that were lifted by the Obama administration as part of an Iran non-nuclear deal that President Trump cancelled. Likely rising tensions between the U.S. and Iran could be the next geopolitical flashpoint in the world marketplace, which could boost safe-haven gold and silver prices. Reports said Iranians are purchasing and hoarding gold on fears of a collapse in the Iranian economy.

The key “outside markets” today see Nymex crude oil prices higher and trading around $69.50 a barrel. The U.S. dollar index is higher today and is very close to its 12-month high scored a few weeks ago.

There were no major U.S. economic reports released today.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,244.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,226.00 and then at $1,230.00. First support is seen at last week’s low of $1,212.50 and then at $1,200.00. Wyckoff's Market Rating: 1.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 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 today’s high of $15.505 and then at last week’s high of $15.635. Next support is seen at last week’s low of $15.25 and then at the July low of $15.185. Wyckoff's Market Rating: 1.5.

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 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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