Gold Pushes Above $1,300 On Trump, Charts, USDX, Then Backs Off Highs

(Kitco News) - Gold prices were higher but well off their daily highs in late-afternoon trading Wednesday. Early on, prices hit a four-week high and climbed above what was a key resistance level of $1,300.00. Safe-haven demand is featured this week as the latest polling in the U.S. presidential election shows a much tighter race between Hillary Clinton and Donald Trump. Trump is even leading in at least one major poll, as the election is less than one week away. Technical buying in gold and silver is also featured this week as the near-term chart postures have significantly improved for both metals. December Comex gold was last up $9.60 an ounce at $1,297.50. December Comex silver was last up $0.092 at $18.515 an ounce.

The Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning ended this afternoon, with no change in interest rates. The vast majority of the marketplace reckoned the Fed would not raise interest rates at this meeting, but will do so at the December FOMC meeting. There was no Fed press conference after this afternoon’s meeting. The gold market showed little initial reaction, and the afternoon sell off was more due to profit taking from shorter-term traders after the recent good gains.

Earlier today, the October ADP national employment report came in at up 147,000. A rise of 170,000 jobs was expected. However, the September ADP number was revised sharply upward, to somewhat offset the weaker October number. The ADP number is a precursor to the more important U.S. Labor Department employment report due out Friday morning.

Eroding crude oil prices recently are lending some selling pressure to world stock markets, and that pressure could be producing some asset flows into gold and silver. Nymex crude oil prices slumped to a five-week low of $44.26 today. Prices have shed about $9.00 a barrel since mid-October. The other key outside market saw the U.S. dollar index trading solidly lower Wednesday. The greenback has been under pressure this week after hitting an 8.5-month high last week.

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Technically, December gold futures bulls have gained the slight overall near-term technical advantage. 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 $1,325.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,280.00. First resistance is seen at $1,310.00 and then at $1,318.00. First support is seen at $1,300.00 and then at today’s low of $1,288.40. Wyckoff’s Market Rating: 5.5

December silver bulls have also gained the slight near-term technical advantage. Prices hit another four-week high overnight. 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 $17.50. First resistance is at $18.85 and then at $19.00. Next support is seen at $18.50 and then at today’s low of $18.36. Wyckoff's Market Rating: 5.5.

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