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Gold prices down amid stable geopolitics, macroeconomics

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(Kitco News) Gold prices are lower in midday U.S. trading Thursday. The safe-haven metals are suffering from a case of no fresh geopolitical flare-ups and a global economy that is seeing no major shocks, either. December gold futures were last down $8.60 an ounce at 1,465.70. December Comex silver prices were last down $0.025 at $17.09 an ounce.

Asian and European stock markets were mostly weaker overnight and the U.S. stock indexes are pointed weaker at midday, but no far below this week’s record highs. Low-risk aversion is keeping money flowing into U.S. equities at the expensive of gold and silver markets.

Once again, the marketplace is focusing on the up-and-down U.S.-China trade talks, and now with a downbeat bias. Reports overnight say China trade officials have contacted U.S. trade officials regarding a meeting in China soon. The reports said the U.S. has yet to respond. This news follows comments from President Trump this week that dented optimism for a partial trade deal being signed anytime soon. Trump late Wednesday said China is not “stepping up” on a trade deal and that the U.S. could slap more tariffs on Chinese imports. A report Wednesday also said China is standing firm on wanting the U.S. to rollback all of its tariffs on Chinese products. Most traders and investors have become numb to the matter.

Hong Kong civil unrest remains high and the protestors got a psychological boost this week when the U.S. Congress proposed official U.S. backing of them. That has also angered mainland China. This situation is likely to get worse before it gets better.

In other overnight news, the Paris-based OECD think tank has forecast global economic growth in 2020 at 2.9% and at 3.0% in 2021. Those numbers are steady to slightly lower than the previous forecasts for the time periods. The OECD also forecast China’s economic growth in 2021 slowing to 5.5%.

The key “outside markets” today see the U.S. dollar index slightly up. Nymex crude oil prices are higher and trading around $58.25 a barrel.

Technically, December gold futures bears 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 this week’s high of $1,479.20 and then at $1,490.00. First support is seen at this week’s low of $1,456.60 and then at $1,450.00. Wyckoff's Market Rating: 4.5

Live 24 hours gold chart [Kitco Inc.]

December silver futures bears 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 at $17.25 and then at $17.50. Next support is seen at Tuesday’s low of $16.935 and then at this week’s low of $16.705. Wyckoff's Market Rating: 4.0.

Live 24 hours silver chart [ Kitco Inc. ]

December N.Y. copper closed down 255 points at 262.40 cents today. Prices closed near the session low today. The copper bulls and bears are on a level overall near-term technical playing field amid choppy trading. 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 265.10 cents and then at this week’s high of 266.60 cents. First support is seen at the November low of 261.30 cents and then at 260.00 cents. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.