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Gold, Silver Fare Pretty Well Amid Better Risk Appetite

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(Kitco News) - Gold and silver prices are modestly up in midday U.S. trading Tuesday. Monday’s price weakness was seen to be a buying opportunity in the safe-haven metals. Still, upbeat trader and investor attitudes early this week are limiting the upside. December gold futures were last up $4.00 an ounce at 1,515.60. September Comex silver prices were last up $0.19 at $17.13 an ounce.

Global stock markets were steady to firmer today. U.S. stock indexes are slightly down at midday.

While trader and investor sentiment remained more positive Tuesday, is this just a reprieve before the keener uncertainty and anxiety returns to the world marketplace? Slowing world economic growth, geopolitics that sees some hotspots and worrisomely low global inflation are all still lingering, heading into what can be turbulent trading months of September and October. My bet is that the world markets still have some rough waters and higher volatility just ahead.

President Trump continues his assault on the Federal Reserve, on Monday saying the central bank has shown a “horrendous lack of vision.” Later this week the annual Jackson Hole, Wyoming Federal Reserve confab that sees central bankers of the world attending will be extra closely monitored by the marketplace. Fed Chairman Powell speaks to the gathering Friday.

The German government today set a zero percent coupon on its new issue of 2050-dated bonds (bunds). Just a few years ago veteran market watchers would have shuddered to think that an investor would be interested in a 30-year bond that pays no interest.

The key “outside markets” today see Nymex crude oil prices near steady and trading around $56.25 a barrel. The U.S. dollar index is modestly down.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices closed nearer the session high. The bulls have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. There are still no significant, 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 the August high of $1,546.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,488.90. First resistance is seen at this week’s high of $1,523.60 and then at $1,530.00. First support is seen at today’s low of $1,503.00 and then at $1,500.00. Wyckoff's Market Rating: 7.5

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 the August high of $17.49 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.51. First resistance is seen at $17.37 and then at $17.49. Next support is seen at $17.00 and then at this week’s low of $16.82. Wyckoff's Market Rating: 7.5.

September N.Y. copper closed down 255 points at 257.60 cents today. Prices closed nearer the session low. 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 275.00 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 today’s high of 260.35 cents and then at this week’s high of 262.60 cents. First support is seen last week’s low of 256.70 cents and then at the August low of 253.15 cents. Wyckoff's Market Rating: 1.5.

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