Gold, Silver Prices See Tepid Bounces
(Kitco News) - Gold and silver prices are modestly higher in early-afternoon U.S. trading Tuesday. Some short covering in the futures market (the buying back of previously sold, or short, positions) and some perceived bargain hunting in the cash market were seen in quieter summertime trading today, after both markets dropped to 12-month lows recently. December gold futures were last up $2.10 an ounce at $1,219.80. September Comex silver was last up $0.057 at $15.405 an ounce.
World stock markets were mostly higher today, to underscore the fact there continues to be no significant risk aversion in the marketplace. That remains a major bearish element working against the safe-haven gold and silver markets.
The U.S. today brought back harsh economic sanctions on Iran that were lifted by the Obama administration as part of an Iran non-nuclear deal that President Trump cancelled. Trump tweeted today that anyone doing business with Iran will not be doing business with the U.S. 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 say Iran could produce a nuclear bomb within a year.
The key “outside markets” today see Nymex crude oil prices slightly higher and trading just above $69.00 a barrel. The U.S. dollar index is weaker today but still not far below its recent 12-month high. The Turkish lira fell to a new low against the dollar this week, as an example of how the secondary world currencies have been punished by a stronger U.S. dollar.
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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 Monday’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: 1.5
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 last week’s high of $15.635 and then at $15.70. 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.