old Up, Hits 4-Week High; Closing In On $1,300

(Kitco News) - In late U.S. trading Tuesday, gold prices were solidly up and hit a four-week high. The yellow metal is now knocking on the door of $1,300.00. The weaker U.S. dollar index on this day gave the precious metals markets a boost. The near-term chart postures for gold and silver markets are also becoming more bullish, which is inviting new technical buying interest. December Comex gold was last up $18.30 an ounce at $1,291.30. December Comex silver was last up $0.654 at $18.45 an ounce.

The latest polling in the U.S. presidential election also shows a tightening race between Hillary Clinton and Donald Trump. Trump closing the gap as the election is now one week away could also be helping to lift the safe-haven gold market. Most of the world perceives Trump as a bigger unknown should he win the presidency.

There was some upbeat economic data coming out of China, the world’s second-largest economy, Tuesday. China’s official purchasing managers index (PMI) rose to 51.2 in October from 50.4 in September. The October number was higher than market expectations. The better China data was also friendly for precious metals, as China is a major importer of metals.

The Federal Reserve’s Open Market Committee (FOMC) meeting began today and ends Wednesday afternoon with a statement. The majority of the marketplace believes the Fed will not raise interest rates at this meeting, but will wait until the December meeting to do so.

The other key outside markets on Tuesday saw Nymex crude oil prices near steady and hitting a five-week low early on. Recently weaker oil prices have weighed on world stock markets. 

Big economic events later this week include the Bank of England’s monetary policy meeting Thursday and the U.S. employment report on Friday.

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

Technically, December gold futures bulls and bears are now back on a level overall near-term technical playing field but the bulls have momentum. Prices are in a four-week-old uptrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the October low of $1,243.20. First resistance is seen at $1,300.00 and then at $1,310.00. First support is seen at $1,280.00 and then at today’s low of $1,276.30. Wyckoff’s Market Rating: 5.0

December silver bulls and bears are also now on a level near-term technical playing field and the bulls have momentum. Prices hit a four-week high Tuesday. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $17.115. First resistance is at $18.715 and then at $19.00. Next support is seen at $18.25 and then at $18.00. Wyckoff's Market Rating: 5.0.

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