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Gold Boosted By Safe-Haven Demand As N. Korea Back In Focus

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(Kitco News) - Gold prices were ending the U.S. day session higher Tuesday, but well off the daily highs that saw an 11-month high scored in early U.S. trading. The yellow metal was supported on news North Korea fired a ballistic missile over Japan. An eroding U.S. dollar index that hit another 15-month low today also lifted the precious metals markets. Some normal profit taking from the shorter-term traders took the gold and silver markets down from their daily highs. December Comex gold was last up $5.00 an ounce at $1,320.40. December Comex silver prices hit a 2.5-month high today and were last up $0.076 at $17.605 an ounce.

The ball is now in the Trump administration’s court after North Korea’s latest and arguably most serious provocation. North Korea is seemingly daring the U.S. to make a military move, after recent tough talk that has come from the U.S. President Trump tweeted today that “all options are on the table” regarding dealing with the North Koreans’ latest actions.

The Euro currency hit another 2.5-year high Tuesday, while the Japanese yen also surged on safe-haven demand from Asian traders and investors. U.S. Treasury futures prices also hit contract highs today, on perceived flight-to-quality buying.

The U.S. dollar index has been further hobbled by the major hurricane damage in Texas, which is likely to reduce U.S. GDP in the third quarter.

The other outside market on Tuesday saw Nymex crude oil futures lower. The hurricane and ensuing torrential rains have flooded the Houston, Texas region, including major gasoline refineries. This will reduce supplies of U.S. gasoline, but also demand for crude oil, in the coming weeks, or longer. That’s bearish for crude and bullish for gasoline futures. 

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices closed nearer the session low today. The gold bulls have the solid overall near-term technical advantage. Prices are in a steep seven-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,290.00. First resistance is seen at today’s high of $1,331.90 and then at $1,340.00. First support is seen at $1,307.00 and then at $1,300.00. Wyckoff's Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices closed nearer the session low after hitting a 2.5-month high early on today. The silver bulls have the overall near-term technical advantage and have gained more power early this week. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing 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 the August low of $16.56. First resistance is seen at today’s high of $17.755 and then at the June high of $17.92. Next support is seen at today’s low of $17.495 and then at $17.40. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed up 165 points at 310.25 cents today. Prices closed nearer the session high and hit another nearly three-year high today. The copper bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 295.00 cents. First resistance is seen at today’s high of 312.15 cents and then at 315.00 cents. First support is seen at today’s low of 307.65 cents and then at this week’s low of 305.95 cents. Wyckoff's Market Rating: 8.5.

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.