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Gold firms on safe-haven demand, shorts buying back in futures

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(Kitco News) - Gold and silver prices are higher in midday U.S. trading Thursday. Trader and investors risk aversion has up-ticked as the week has progressed and that’s benefitting the safe-haven metals. The shorter-term futures traders that had sold the metals earlier are also getting skittish and buying back those short positions (short covering). December gold futures were last up $9.50 an ounce at 1,472.80. December Comex silver prices were last up $0.072 at $16.985 an ounce.

Risk aversion has up-ticked as the trading week progresses. A U.S.-China trade partial agreement now appears farther off after both sides have made comments this week to support that notion. China is reportedly balking at specific amounts of U.S. agricultural products it would be required to purchase in a trade deal. Meantime, President Trump said the U.S. is not going to roll back all of its tariffs on Chinese imports, which is what China is apparently requesting.

There was more downbeat economic data coming out of China Thursday, to support President Trump’s assertions the trade war is hurting China way more than the U.S. China’s industrial output in October was up 4.7% year-on-year—down from a rise of 5.8% in September. Retail sales were up 7.2% in October, also missing on the downside trade forecasts. Other economic data released from China Thursday was a mixed bag.

Global risk appetite is also dented this week by an escalation of civil unrest in Hong Kong, including police shooting at least one protestor.

The key “outside markets” today see the U.S. dollar index weaker. Nymex crude oil prices are slightly lower and trading around $57.00 a barrel.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices were nearer the session high at midday today. The bears still have the slight overall near-term technical advantage as prices have been trending lower for nine weeks. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,425.00. First resistance is seen at today’s high of $1,475.00 and then at $1,490.00. First support is seen at today’s low of $1,461.70 and then at $1,450.00. Wyckoff's Market Rating: 4.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures were near mid-range at midday on tepid short covering after hitting a three-month low Tuesday. The silver bears have the overall near-term technical advantage. Prices have been trending lower for two months. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.10 and then at $17.25. Next support is seen at this week’s low of $16.615 and then at $16.50. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed down 185 points at 262.05 cents today. Prices closed near the session low and hit a three-week low today. Prices also scored a bearish “outside day” down on the daily bar chart. The copper bulls have lost their overall near-term technical advantage as a price uptrend on the daily bar chart has been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 273.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 255.00 cents. First resistance is seen at today’s high of 265.80 cents and then at 269.00 cents. First support is seen at today’s low of 261.75 cents and then at 260.00 cents. Wyckoff's Market Rating: 5.5.

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