Gold, silver surge to 2-wk highs on safe-haven buying, bullish charts
(Kitco News) - Gold and silver prices are higher, with and silver prices sharply up in midday U.S. trading Monday. Risk aversion in the world marketplace has crept back to start the trading week, as there is still uncertainty on the geopolitical front. The technical postures for both gold and silver markets also are solidly bullish. December gold futures were last up $14.80 an ounce at 1,529.90. December Comex silver prices were last up $0.801 at $18.65 an ounce.
There was more protesting and related violence in Hong Kong over the weekend, the U.S.-China trade negotiations have taken another step backward and there is mounting concern regarding weakening global economic growth. U.S.-Iran tensions are also smoldering in the background. All of the above making traders and investors around the globe extra nervous.
Purchasing managers’ index (PMI) reports coming out of the European Union Monday showed the Euro zone composite PMI for September come in at a lower-than-expected 50.4. A reading below 50.0 suggests contraction. More worrisome, Germany’s manufacturing PMI in September came in at 41.4, which was also worse than expected and suggests the German economy is teetering on recession.
Nymex crude oil prices are slightly higher and trading around $58.25 a barrel. The Wall Street Journal reported over the weekend that it could take months, not weeks, to fully restore production at the oil installations attacked in Saudi Arabia in mid-September.
The other key outside market today sees the U.S. dollar index trading modestly up.
Technically, December gold futures prices were nearer the session high. The bulls have the solid overall near-term technical advantage amid a four-month-old uptrend in place on the daily bar chart. 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 $1,534.40 and then at $1,540.00. First support is seen at today’s low of $1,517.90 and then at $1,510.00. Wyckoff's Market Rating: 7.5
December silver prices were nearer the session high. The silver bulls have the solid overall near-term technical advantage. A four-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 $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $17.47. First resistance is seen at today’s high of $18.71 and then at $17.89. Next support is seen at $15.25 and then at $18.00. Wyckoff's Market Rating: 7.0.
December N.Y. copper closed up 60 points at 261.30 cents today. Prices closed near the session high today. The copper bears have the 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 the September low of 248.20 cents. First resistance is seen at 264.75 cents and then at 268.00 cents. First support is seen at today’s low of 257.25 cents and then at 255.00 cents. Wyckoff's Market Rating: 3.0.