Gold Up, Hits 27-Mo. High, On Safe-Haven Demand; FOMC Minutes A Non-Event

(Kitco News) - Gold prices ended the U.S. day session higher and hit a 27-month high Wednesday, on more safe-haven demand as risk appetite in the marketplace is on the downswing, post-Brexit vote. Silver prices also saw good gains today, after hitting a two-year high on Tuesday. August Comex gold was last up $7.70 an ounce at $1,366.40. September Comex silver was last up $0.228 at $20.135 an ounce.

The minutes from the last FOMC meeting were released this afternoon, but contained no new information or clues to move the markets and were a non-event. Still, many believe the minutes leaned to the dovish side of U.S. monetary policy. The FOMC members also were worried (at that time) about the then-upcoming Brexit vote.

The risk aversion in the marketplace Wednesday came amid worries about U.K. property fund redemptions and the health of European banks. World stock markets were mostly lower overnight, U.S. T-Bond futures prices are at all-time record highs, and 10-year U.S. T-note yields are at a record low.

There is still lingering uneasiness in the marketplace following the U.K. vote to leave the European Union (Brexit) that occurred in late June. The British pound fell to a 31-year low Wednesday and U.K. government bonds (gilts) saw yields fell to a record low. German government bonds (bunds) saw its yield fall into record low negative territory, at -0.69%. Yields on Japan’s benchmark government bond fell below zero for the first time ever Wednesday.

All of the above do not at all bode well for stock and most commodity markets in the coming weeks and months.

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Technically, August gold futures prices closed near mid-range. The gold bulls have the solid overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,400.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of $1,338.50. First resistance is seen at today’s high of $1,377.50 and then at $1,385.00. First support is seen at today’s low of $1,356.30 and then at $1,350.00. Wyckoff’s Market Rating: 8.5

September silver futures prices closed near mid-range today and closed at a two-year high close. The silver market bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $22.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.50. First resistance is seen at today’s high of $20.585 and then at $20.75. Next support is seen at today’s low of $19.93 and then at this week’s low of $19.61. Wyckoff's Market Rating: 8.0.

September N.Y. copper closed down 275 points at 215.60 cents today. Prices closed near mid-range on profit taking from recent gains. The copper bulls still have the slight overall near-term technical advantage but are fading this week. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 210.00 cents. First resistance is seen at today’s high of 219.00 cents and then at 220.00 cents. First support is seen at today’s low of 213.30 cents and then at 211.00 cents. Wyckoff's Market Rating: 5.5.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com