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Gold sees moderate gains on some safe-haven demand

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(Kitco News) Gold prices are moderately up in midday U.S. trading Wednesday, on a bit of risk aversion amid the Brexit saga playing out. December gold futures were last up $8.70 an ounce at 1,496.30. December Comex silver prices were last up $0.065 at $17.565 an ounce.

The Brexit uncertainty is still weighing on European equities and even some global stock markets, to a lesser degree. The British Parliament is wrangling with U.K. Prime Minister Boris Johnson on the timing of the U.K. leaving the European Union. Johnson wants a resolution to the matter and a Brexit sooner. Parliament is divided on the topic. Right now, October 31 is the official Brexit date.

The Indian Diwali festival begins Friday. Gold demand from Indian consumers usually rises during the festival. However, reports say Indian consumer gold demand could decrease up to 50% this year due to higher gold prices and an increase the country’s gold import duty.

U.S. stock indexes are near steady in early afternoon trading. Caterpillar reported a big earnings miss to the downside this morning, which is limiting buying interest in the U.S. equities.

The key “outside markets” today find Nymex crude oil prices higher in early U.S. trading today and trading around $54.30 a barrel. Meantime, the U.S. dollar index is slightly up on a mild corrective bounce from recent selling pressure that drove the index to a nine-week low earlier this week.

Technically, December gold futures prices were near mid-range at midday today. The bulls have the overall near-term technical advantage but a seven-week-old downtrend is still 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 $1,525.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,500.00 and then at $1,510.00. First support is seen at today’s low of $1,490.70 and then at this week’s low of $1,484.00. Wyckoff's Market Rating: 6.5

Live 24 hours gold chart [Kitco Inc.]

December silver futures prices were also near mid-range at midday today. The silver bulls have the overall near-term technical advantage. However, a seven-week-old downtrend is still 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 Tuesday’s high of $17.68 and then at this week’s high of $17.895. Next support is seen at this week’s low of $17.44 and then at $17.33. Wyckoff's Market Rating: 6.0.

Live 24 hours silver chart [ Kitco Inc. ]

December N.Y. copper closed up 410 points at 267.25 cents today. Prices closed near the session high today, hit a five-week high and scored a bullish “outside day” up on the daily bar chart. The copper bears still have the slight overall near-term technical advantage but the bulls gained some momentum today and if there is follow-through buying yet this week it would suggest an uptrend could be sustained. 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 254.00 cents. First resistance is seen at 268.00 cents and then at 270.65 cents. First support is seen at 265.00 cents and then at today’s low of 261.45 cents. Wyckoff's Market Rating: 4.5.

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