Gold Sees Some Follow-Through Strength
(Kitco News) - Gold and silver prices are modestly up in early-afternoon U.S. trading Monday. Some follow-through buying interest from Friday’s solid gains and a lower U.S. dollar index on this day worked in favor of the precious metals market bulls. However, with the world marketplace quieter to start the trading week and with little risk aversion among traders and investors, gains in the safe-haven metals were limited. December gold futures were last up $3.10 an ounce at $1,216.40. December Comex silver was last up $0.059 at $14.965 an ounce.
U.S. stock indexes are solidly higher and set new record highs today, underscoring the keener risk appetite that is in the marketplace at present. However, gold and silver bulls are wondering if the historically turbulent months of September and October that are now right around the corner will provide some upside potential.
Asian markets were supported overnight by moves by China’s central bank to stabilize its currency, the yuan. The yuan in recent weeks had depreciated against the U.S. dollar.
The key outside markets today find the U.S. dollar index lower as the bulls are now fading a bit. Meantime, Nymex crude oil prices are slightly up and trading just below $69.00 a barrel.
Technically, gold bears still have the overall near-term technical advantage but a price downtrend on the daily bar chart is now in jeopardy. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at last week’s high of $1,215.40 and then at $1,220.00. First support is seen at today’s low of $1,209.30 and then at $1,200.00. Wyckoff's Market Rating: 2.5
December silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at last week’s high of $14.965 and then at $15.00. Next support is seen at last week’s low of $14.555 and then at the August low of $14.405. Wyckoff's Market Rating: 2.5.