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Gold sees modest profit taking amid little risk aversion at present

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(Kitco News) - Gold prices are modestly lower in early-afternoon U.S. trading Monday, amid upbeat trader and investor risk appetite to start the trading week. The gold and silver bulls need a new fundamental spark to push prices still higher. December gold futures were last down $4.50 an ounce at 1,511.00. December Comex silver prices were last up $0.051 at $18.17 an ounce.

Asian and European stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday. Trader and investor risk appetite remains elevated. News last Friday that China’s central bank eased its monetary policy and reports over the weekend that the U.K. appears to be avoiding, for now, a “hard Brexit,” have most of the world marketplace in an upbeat mood early this week.

The marketplace should not be lulled into thinking there will be smooth sailing into the end of the year. There are potential headwinds that could pop up quickly.

There was a Dow Jones Newswires report over the weekend that said China’s official economic numbers are probably not accurate and likely are overly hyped by the government. The report said China’s overall economic growth (gross domestic product) is probably about half of what the official numbers say, or actually around 3%, annual growth. This news is not surprising to many market watchers.

There were protesters demonstrating in Hong Kong again over the weekend. However, the markets are not now deeming the protests as an escalation in the overall situation.

The key “outside markets” today see Nymex crude oil prices solidly up and trading around $58.00 a barrel. The U.S. dollar index is weaker in midday U.S. trading today.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices closed nearer the session low today and hit a two-week low. The bulls still have the firm overall near-term technical advantage but need to show some fresh power soon. A three-month-old uptrend is in place on the daily bar chart but now just barely. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,566.20. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,500.00. First resistance is seen at today’s high of $1,523.80 and then at $1,530.00. First support is seen at today’s low of $1,505.50 and then at $1,500.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices closed near mid-range. The silver bulls have the firm overall near-term technical advantage. A three-month-old uptrend is still in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the September high of $19.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support $17.50. First resistance is seen at today’s high of $18.40 and then at $18.58. Next support is seen at $18.00 and then at $17.75. Wyckoff's Market Rating: 7.0.

December N.Y. copper closed down 70 points at 262.70 cents today. Prices closed nearer the session high. The copper bears have the firm overall near-term technical advantage. However, recent good gains suggest this market has put in a bottom. 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 the September low of 248.20 cents. First resistance is seen last week’s high of 264.90 cents and then at 267.50 cents. First support is seen at 260.00 cents and then at 258.75 cents. Wyckoff's Market Rating: 3.0.

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