Gold Prices Down, But Potential Bullish Spark Looms
(Kitco News) - Gold and silver prices are seeing more selling pressure related to a strong U.S. dollar to start the trading week Monday. The yellow metal is trading near last week’s 12-month low. December gold futures were last down $7.10 an ounce at $1,216.10. September Comex silver was last down $0.142 at $15.32 an ounce.
Global stock markets were mostly lower overnight, led by losses in Asia, on fears of a protracted trade war between the world’s two largest economies: the U.S. and China. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.
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 find Nymex crude oil prices higher and trading around $69.50 a barrel. The U.S. dollar index is solidly higher today and is very close to its 12-month high scored a few weeks ago.
There is no major U.S. economic data due for release Monday.
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 the overnight 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
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 the overnight 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.