Gold Sees Modest Gains Ahead Of Important Events This Week

(Kitco News) -Gold prices ended the U.S. day session modestly higher Monday, supported by the key “outside markets” on this day: the U.S. dollar index was weaker and crude oil prices were solidly higher. The marketplace is awaiting some big news events this week, which could provide some bigger price movement in several markets. December Comex gold was last up $2.50 an ounce at $1,344.20. December Comex silver was last down $0.225 at $19.585 an ounce.

On deck Monday evening is the first U.S. presidential debate between Hillary Clinton and Donald Trump. Some speculate this will be the most-watched television debate ever.
There is a sense outside of the U.S. that Trump is an unknown and potentially unpredictable, which could bring anxiety to some markets if it appears Trump has won the debate, or down the road appears to have a good chance to become the next U.S. president. Many reckon that markets worldwide will now start to pay much closer attention to the U.S. presidential race heading up to the early-November election.

Traders and investors will also closely watch this week’s OPEC oil cartel meeting in Algiers, wondering if OPEC will make any significant moves to reduce their collective crude oil output, or make an effort to forge an agreement with Russia to stabilize world oil prices. Crude oil’s daily price movements the past several weeks have been highly influential on other markets, including individual stocks.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Technically, December gold futures prices closed nearer the session high today. The gold bulls have the overall near-term technical advantage and have momentum after prices saw a bullish weekly high close on Friday. Also, a minor bull flag pattern has formed on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,357.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,305.50. First resistance is seen at last week’s high of $1,347.80 and then at $1,350.00. First support is seen at today’s low of $1,336.50 and then at $1,330.00. Wyckoff’s Market Rating: 6.5

December silver futures prices closed nearer the session low today. The silver market bulls have the overall near-term technical advantage but are fading a bit now. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the September high of $20.235 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $18.46. First resistance is seen at today’s high of $19.825 and then at $20.00. Next support is seen at today’s low of $19.475 and then at $19.25. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed down 20 points at 219.90 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Prices Friday hit a six-week high and closed at a bullish weekly high close. 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 212.00 cents. First resistance is seen at last week’s high of 220.65 cents and then at 222.50 cents. First support is seen at today’s low of $2.1815 and then at 216.05 cents. Wyckoff's Market Rating: 6.0.

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