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Gold Sees Slight Gains on Short Covering

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(Kitco News) - Gold prices were just slightly up in early-afternoon U.S. trading Thursday. Better gains seen in early-morning trading were given back as the session progressed. A modestly weaker U.S. dollar index today and slightly downbeat U.S. economic news supported some buying interest in the precious metals markets today. Also, there could have been some mild safe-haven demand at work supporting the gold and silver today, amid new and unflattering revelations about U.S. President Trump. December gold futures were last up $3.20 an ounce at $1,204.40. December Comex silver was last down $0.04 at $14.175 an ounce.

Today’s U.S. ADP national employment report for August came in at up 163,000 jobs, which was slightly below market expectations and did give the gold and silver market prices a slight boost this morning. Traders and investors are now awaiting what is arguably the most important U.S. economic report of the month, due out on Friday: the Labor Department’s employment situation report for August. The key non-farm payrolls component is expected to be up around 190,000.

A New York Times story from an anonymous Trump administration official saying the U.S. President is unhinged could have prompted some safe-haven demand for gold and silver today. The story follows a book by well-known author Bob Woodward that was released this week, which also painted a bleak picture of the Trump presidency.

Some more mild safe-haven buying in the precious metals could have come from the solid losses in Bitcoin today, after Goldman Sachs decided not to pursue trading in that instrument.

The other key outside market today finds Nymex crude oil prices are solidly lower. Bulls are fading and price action the past couple days in crude suggests the oil bulls have run out of gas and that a near-term market top is in place.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bears still have the firm overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,220.70. 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 today’s high of $1,212.70 and then at $1,220.70. First support is seen at $1,200.00 and then at this week’s low of $1,195.10. Wyckoff's Market Rating: 2.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bears have the solid overall near-term technical advantage. There are no early clues to suggest a market bottom is close at hand. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $15.07 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 today’s high of $14.34 and then at $14.405. Next support is seen at this week’s low of $14.035 and then at $14.00. Wyckoff's Market Rating: 1.0.

December N.Y. copper closed up 225 points at 263.30 cents today. Prices closed near mid-range on more short covering in a bear market. The copper bears still have the firm overall near-term technical advantage. However, more decent gains in the very near term would form a bullish double-bottom reversal pattern on the daily chart, which would be a solid clue that a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 283.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at this week’s high of 268.00 cents and then at 270.00 cents. First support is seen at 260.00 cents and then at 257.45 cents. 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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