Gold, silver gain on safe-haven, technical buying
(Kitco News) - Gold prices posted slight gains and hit a 6.5-year high in overnight trading, while the silver market saw solid gains and hit a two-year high. Geopolitics is on the front burner of the market place early this week, which is helping to lift the safe-haven metals. Their technical postures are also fully bullish, which continues to invite the chart-based buyers. December gold futures were last up $0.90 an ounce at 1,538.50. December Comex silver prices were last up $0.231 at $17.785 an ounce.
The unexpected twists and turns in the U.S.-China trade war continued today, as President Trump early this morning said Chinese trade officials called U.S. trade officials Sunday evening to restart discussions. Trump said China “wants to make a deal” and “that’s a great thing.” Chinese officials, when questioned on the matter, were murky on whether a telephone call actually took place. Still, the gold market backed way down from its overnight high of $1,565.00, basis December futures. Meantime, markets in Asia and Europe that were under selling pressure early on rebounded when the Trump news hit the news wires. U.S. stock indexes are solidly up at midday. The surprise news Monday comes after Trump on Friday unleashed a barrage of negative tweets on China, including “demanding” that U.S. businesses leave there.
Tensions in Hong Kong remain high amid civil unrest there. Reports said weekend clashes between protesters and police escalated, including protesters throwing rocks and police using water cannons.
The weekend G-7 summit in Paris produced nothing major that the marketplace deemed as price-sensitive. Trump had a chance to meet with Iran’s foreign minister who showed up unexpectedly, but declined to do so.
In other overnight news, the closely watched German Ifo business conditions index in August fell to 94.3 versus expectations of a reading of 95.1. This report falls in line with reports coming out of the world’s major economies that show generally slowing global economic growth.
The key “outside markets” today see Nymex crude oil prices weaker and trading around $53.75 a barrel. The U.S. dollar index is solidly higher today.
Technically, December gold futures prices closed nearer the session low today. The bulls have the solid overall near-term technical advantage. A nearly three-month-old uptrend is in place on the daily bar chart. There are 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 $1,600.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,500.00. First resistance is seen at $1,546.10 and then at $1,550.00. First support is seen at $1,530.00 and then at $1,523.00. Wyckoff's Market Rating: 8.0.
December silver futures prices closed near mid-range today and hit a two-year high. The silver bulls have the solid overall near-term technical advantage. A three-month-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 $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today’s high of $17.90 and then at $18.00. Next support is seen at $17.605 and then at $17.50. Wyckoff's Market Rating: 8.0.
December N.Y. copper closed up 140 points at 255.05 cents today. Prices closed nearer the session high after hitting a 2.5-year low early on 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 265.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 240.00 cents. First resistance is seen at today’s high of 255.70 cents and then at 258.35 cents. First support is seen 253.20 cents and then at today’s low of 249.90 cents. Wyckoff's Market Rating: 1.0.