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Gold Prices Back Above $1,400 on Bargain Hunting, Safe-Haven Buying

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(Kitco News) - Gold prices are sharply higher in midday U.S. trading Tuesday. The safe-haven metal is seeing renewed demand from traders and investors as their overall risk appetite is less robust than that which was seen on Monday. Bargain buyers also stepped in to buy the recent corrective dip in an uptrend. A drop in the U.S. dollar index today also helped out the precious metals market bulls. August gold futures were last up $18.40 an ounce at 1,407.70. September Comex silver prices were last up $0.057 at $15.255 an ounce.

After having some time to reflect upon the weekend summit meeting on trade between U.S. President Trump and China President Xi, the marketplace is not quite so upbeat on the prospects of a final agreement any time soon. There is speculation now that a deal won’t get done ahead of the 2020 U.S. presidential election. Furthermore, there was some downbeat U.S. manufacturing data released Monday and the Trump administration is again threatening the European Union with trade tariffs.

There was some civil unrest in the streets of Hong Kong on Monday, but that has fallen out of the TV news cycle, which suggests that situation may have calmed down.

The key “outside markets” today see Nymex crude oil prices solidly lower and trading just above $57.00 a barrel. Meantime, the U.S. dollar index is down after scoring good gains Monday. 

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed near the session high today. The bulls have the firm overall near-term technical advantage amid a five-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 $1,428.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of $1,384.70. First resistance is seen at $1,415.00 and then at $1,410.00. First support is seen at $1,400.00 and then at $1,390.00. Wyckoff's Market Rating: 7.0.

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed nearer the session high today. The silver bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart, but just barely and the bulls need to show more power soon. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the June high of $15.625 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.70. First resistance is seen at this week’s high of $15.345 and then at $15.50. Next support is seen at today’s low of $15.07 and then at $15.00. Wyckoff's Market Rating: 6.0.

September N.Y. copper closed down 245 points at 266.30 cents today. Prices closed nearer the session low today and hit a two-week low. The copper bears have gained the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 280.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 259.95 cents. First resistance is seen at today’s high of 269.65 cents and then at 272.50 cents. First support is seen at today’s low of 265.55 cents and then at 265.00 cents. Wyckoff's Market Rating: 3.0.

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