Gold Hit Hard By Risk-On Atmosphere Just Ahead Of U.S. Election

(Kitco News) - Gold prices ended the U.S. day session sharply lower Monday. The big development in the world marketplace Monday was weekend news the FBI cleared U.S. presidential candidate Hillary Clinton of any criminal charges regarding her personal email server. That put risk appetite back into the marketplace bigtime, just one day ahead of the U.S. election. December Comex gold was last down $22.70 an ounce at $1,281.80. December Comex silver was last down $0.216 at $18.155 an ounce.

Most believe the FBI’s closure of the email case, again, puts Clinton in a better position to win the presidency over Donald Trump, who is perceived by traders and investors worldwide to be the much bigger unknown. World stock markets and the U.S. dollar rallied Monday and the Japanese yen sold off on the news. U.S. stock indexes were sharply higher at midday Monday and ended the longest daily losing streak in years. Last week, global equity markets saw significant selling pressure as polls showed Trump dramatically closing the gap with Clinton, after the FBI had indicated it could reopen the email case on Clinton.

The crude oil market rebounded modestly Monday, on short covering and bargain hunting following strong selling pressure seen last week. Nymex crude oil prices are trading just above $44.00 a barrel after dropping to a nearly three-month low of $43.57 last Friday. The slumping crude oil market has been a drag on the raw commodity sector and had been also for the world stock markets.

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Technically, December gold futures prices closed nearer the session low. The gold bulls still have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. Prices are still in a four-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 the November high of $1,309.20. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,262.00. First resistance is seen at $1,290.00 and then at today’s high of $1,296.50. First support is seen at today’s low of $1,278.60 and then at $1,270.00. Wyckoff's Market Rating: 5.5

December silver futures prices closed near mid-range and saw profit-taking from recent gains. The sharp losses in gold today also aided the silver market bears. The silver market bulls still have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing 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 seen at today’s high of $18.29 and then at $18.50. Next support is seen at $18.00 and then at last week’s low of $17.755. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 440 points at 230.90 cents today. Prices closed nearer the session high and hit a nearly eight-month high today. The copper bulls have the firm overall near-term technical advantage and gained more power today. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the January high of 232.90 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 215.00 cents. First resistance is seen at today's high of 231.25 cents and then at 232.90 cents. First support is seen at 228/00 cents and then at today’s low of 225.55 cents. Wyckoff's Market Rating: 7.0.

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