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Gold, Silver Up Amid Risk Aversion Worldwide

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(Kitco News) - Gold and silver prices are higher in midday U.S. trading Monday and not far below their recent for-the-move highs scored last week. Save-haven demand is featured to start the trading week, as protesting in Hong Kong escalated over the weekend. December gold futures were last up $9.10 an ounce at 1,517.60. September Comex silver prices were last up $0.134 at $17.06 an ounce.

There was major protesting by the citizens of Hong Kong over the weekend, which shut down the city’s main airport. This situation appears to be getting worse every weekend.
Market watchers wonder how long mainland China will allow the civil unrest to go on before a crackdown.

Worries about slowing global economic growth and the resulting easing of monetary policies from the major central banks of the world continue to underpin the gold and silver markets. The main element of worry on the matter is the U.S.-China trade war that has escalated in August.

China’s central bank on Monday set its currency, the yuan, exchange rate with the U.S. dollar at 7.0211, which is above the 7 level the U.S. has deemed problematic. This exchange rate will continue to be closely monitored.

The key “outside markets” today see Nymex crude oil prices up and trading around $54.75 a barrel. The U.S. dollar index is trading slightly down in midday U.S. action.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices closed nearer the session high today. The bulls have the strong overall near-term technical advantage. A 10-week-old uptrend is in place on the daily bar chart. There are still no early chart clues to suggest a market top is close at hand. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,550.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,485.00. First resistance is seen at last week’s high of $1,522.70 and then at $1,525.00. First support is seen at $1,510.00 and then at $1,500.00. Wyckoff's Market Rating: 8.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed near the session high today. The silver bulls have the solid overall near-term technical advantage. An 11-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at last week’s high of $17.26 and then at $17.50. Next support is seen at today’s low of $16.80 and then at $16.685. Wyckoff's Market Rating: 8.0.

September N.Y. copper closed down 35 points at 258.55 cents today. Prices closed near mid-range today. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 268.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at last week’s high of 261.75 cents and then at 264.00 cents. First support is seen today’s low of 256.80 cents and then at last week’s low of 253.15 cents. Wyckoff's Market Rating: 2.0.

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