Gold Powers To 11-Mo. High On Safe-Haven Demand, Bullish Charts And Outside Markets

(Kitco News) - Gold prices were ending the U.S. day session solidly higher and scored another 11-month high Tuesday. Rising tensions between the U.S. and North Korea are fueling safe-haven demand for gold. Strong buying interest from the technically based traders is also pushing gold and silver prices up. And, the key “outside markets were in a fully bullish posture for the precious metals markets on this day. December Comex gold was last up $12.80 an ounce at $1,343.10. December Comex silver prices hit a four-month high today and were last up $0.119 at $17.94 an ounce.

The latest North Korea nuclear bomb test last weekend is reported to be the biggest bomb yet. The U.S. responded by saying North Korea is “begging for war.” This major geopolitical matter has ratcheted up yet another notch.

The U.S.-North Korea face-off will continue to support the gold market, and at the very least limit selling interest in the safe-haven metal.

The U.S. stock market sold off sharply Tuesday, following the lead of world stock markets on Monday, when U.S. markets were closed for the Labor Day holiday.

The other outside markets on Tuesday saw the U.S. dollar index lower and not far above the recent 15-month low. Nymex crude oilfutures were solidly higher.

The major economic data point of the week is Thursday’s European Central Bank monetary policy meeting, including a press conference from ECB President Mario Draghi after the meeting.

Technically, December gold futures prices closed nearer the session high today. The gold bulls have the solid overall near-term technical advantage. Prices are in a steep two-month-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 $1,378.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,345.50 and then at $1,350.00. First support is seen at today’s low of $1,331.10 and then at $1,325.00. Wyckoff's Market Rating: 8.0

December silver futures prices closed nearer the session low but hit a four-month high early on today. The silver bulls have the firm overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today’s high of $18.09 and then at $18.25. Next support is seen at today’s low of $17.835 and then at $17.50. Wyckoff's Market Rating: 7.0.

December N.Y. copper closed up 85 points at 312.65 cents today. Prices closed nearer the session low and did hit another three-year high early on today. The copper bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at 315.00 cents and then at today’s high of 317.85 cents. First support is seen at 310.00 cents and then at 307.65 cents. Wyckoff's Market Rating: 8.5.