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Gold firms on slight risk aversion, Trump tweet

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(Kitco News) - Gold and silver prices are modestly higher in midday U.S. trading Monday, on a slight downtick in trader and investor risk appetite and some short covering in the futures market. The U.S. dollar index has backed off a bit today, which is also a positive daily element for the precious metals markets. December gold futures were last up $4.10 an ounce at 1,472.60. December Comex silver prices were last up $0.072 at $17.02 an ounce.

U.S. stock indexes hit new contract and record highs earlier today but have backed off those highs on new notions that U.S.-China trade talks are now at a sticking point on a few important matters, which may not be able to be overcome for an agreement to be reached between the world’s two largest economies.

Traders and investors are taking note of a meeting Monday between President Trump, Treasury Secretary Mnuchin and Federal Reserve Chairman Powell. Trump tweeted that they discussed several matters, including easing of monetary policy, trade and the U.S. dollar. The tweet also said the discussion was good. While the marketplace did not know precisely how to take the meeting and most markets did not show a big reaction, the gold market did hit its daily highs not long after the news of the meeting hit the wires. It could be that some traders are reading Trump’s upbeat tweet on the meeting as meaning Powell may continue to lean easy on U.S. monetary policy. 

In overnight news, China’s central bank eased its monetary policy again Monday by lowering its reverse repurchasing rate for the first time since 2015. The trade war with the U.S. has hurt China’s economy and the central bank is working to keep it stimulated.

Hong Kong civil unrest remains elevated and the world marketplace continues to monitor the situation, but it has not boiled over into something significantly impacting global trader and investor sentiment.

The key “outside markets” today see the U.S. dollar index lower. Nymex crude oil prices are also weaker and trading around $56.75 a barrel.

U.S. economic data due for release Monday includes the NAHB housing index, and Treasury international capital data. The U.S. data point of the week will be the FOMC minutes reports release on Wednesday afternoon.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices closed nearer the session high today and scored a mildly bullish “outside day” up on the daily bar chart. The bears still have the slight overall near-term technical advantage as prices have been trending lower for 2.5 months. 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 last week’s high of $1,475.50 and then at $1,480.00. First support is seen at today’s low of $1,456.10 and then at $1,450.00. Wyckoff's Market Rating: 4.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices closed near the session high and scored a mildly bullish “outside day” up on the daily bar chart. The silver bears still have the overall near-term technical advantage. Prices have been trending lower for 2.5 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 $16.50. First resistance is seen last week’s high of at $17.08 and then at $17.25. Next support is seen at today’s low of $16.705 and then at last week’s low of $16.615. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed down 185 points at 261.95 cents today. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart. 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 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 264.85 cents and then at 267.50 cents. First support is seen at last week’s low of 261.30 cents and then at 260.00 cents. Wyckoff's Market Rating: 4.0.

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