Despite Some Weakness, Not A Bad Day For Gold

(Kitco News) - The gold market had several bearish elements working against it Monday, yet prices finished just modestly down and up from the daily lows. All in all, the gold market bulls should still feel pretty good about their metal, at present. The psychologically important $1,300.00 level is within striking distance and will probably be struck in the coming days. December Comex gold was last down $3.50 an ounce at $1,290.50. September Comex silver was last up $0.05 at $17.12 an ounce.

Global stock markets were mostly higher Monday, with U.S. stock indexes solidly higher, on the easing of fears the U.S. and North Korea are headed toward military conflict soon. The U.S. secretary of defense and secretary of state, as well as other Trump administration officials, on Sunday said they are trying to achieve denuclearization of North Korea through diplomacy. Also, China on Monday said it has banned key North Korean imports. The reduced anxiety in the marketplace and the rallying world stock markets were negatives for the safe-haven gold market.

However, don’t look for this major geopolitical situation to just get better and go away any time soon. This matter will continue to be near the front-burner of the marketplace for at least the near term. Such will at the very least limit selling pressure in the safe-haven gold market.

The key “outside markets” were also in a bearish daily posture for gold and silver markets today. The U.S. dollar index was higher. Trading has been choppy in the greenback the past week. Meantime, Nymex crude oi futures were lower. Crude oil trading has also been choppy and sideways the past week. Stiff overhead resistance at the $50.00 level is keeping the bulls in check, at present.

There were no major U.S. economic reports released Monday.

Technically, December gold futures bulls still have the firm overall near-term technical advantage.  Bulls’ next upside technical objective is pushing prices above chart resistance at $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,257.10. First resistance is seen at last week’s high of $1,298.10 and then at $1,300.00. First support is seen at the overnight low of $1,284.20 and then at $1,280.00. Wyckoff’s Market Rating: 7.0

September silver have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. The next upside price breakout objective is closing futures prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.25. First resistance is seen at last week’s high of $17.24 and then at $17.50. Next support is seen at $16.85 and then at $16.50. Wyckoff's Market Rating: 6.0.