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Gold down as risk aversion wanes

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(Kitco News) - Gold and silver prices are weaker in midday U.S. trading Monday. The bulls need some new, positive fundamental developments to break the near-term price downtrends in place on the daily bar charts. December gold futures were last down $8.90 an ounce at 1,503.90. December Comex silver prices were last down $0.08 at $17.54 an ounce.

Risk aversion is not keen in the marketplace to start the trading week. There are no geopolitical hotspots on the front burner at present, but some are lingering close, including civil unrest in Hong Kong, turbulence in the Middle East, Brexit, the Trump impeachment inquiry, and the U.S.-China trade war.

Asian stocks were mixed overnight. China’s markets were still closed for a holiday Monday. European stock markets were a down modestly following some more downbeat manufacturing data coming out of Germany. The U.S. stock indexes are slightly up at midday.

In focus early this week is the U.S.-China trade talks that restart later this week in Washington, D.C. There is no consensus on whether this latest round of discussions will make any progress toward a trade agreement.

The World Gold Council said world central banks in August purchased 62.1 tons of gold and sold 4.8 tons. That’s way up from central banks buying a net total of 12.8 tons in July.

Nymex crude oil prices are up and trading around $53.70 a barrel today. The other key “outside market” sees the U.S. dollar index slightly up in midday U.S. trading.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices were near the session low at midday. The bulls still have the overall near-term technical advantage but a four-week-old downtrend is 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 late-September high of $1,543.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at October low of $1,465.00. First resistance is seen at $1,510.00 and then at today’s high of $1,518.80. First support is seen at $1,500.00 and then at $1,490.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices were near mid-range today. The silver bulls have the overall near-term technical advantage. However, a four-week-old downtrend 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 the October low of $16.94. First resistance is seen at today’s high of $17.70 and then at last week’s high of $17.845. Next support is seen at Friday’s low of $17.733 and then at $17.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 185 points at 258.05 cents today. Prices closed nearer the session high on short covering. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 270.65 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 260.00 cents and then at 262.35 cents. First support is seen at today’s low of 255.25 cents and then at the October low of 251.50 cents. Wyckoff's Market Rating: 2.5.

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