Gold Up in Choppy, 2-Sided Session

(Kitco News) - Gold prices were ending a choppy U.S. trading day with slight gains Thursday. Prices traded on both sides of unchanged during the day session. Several fundamental elements were at work in the gold and silver markets today, but they mostly offset each other. December Comex gold was last up $1.50 an ounce at $1,329.50. December Comex silver prices were last down $0.087 at $17.78 an ounce.

The marketplace Thursday showed a muted reaction to the news that North Korea has now threatened to “sink Japan” with its nuclear missiles and also to reduce the U.S. mainland “to ashes.” Still, this is another reminder of the still high tensions between the U.S. and North Korea, which will continue to limit selling interest in the safe-haven gold market.

Recent rallies in world stock markets have been a negative for the gold market. U.S. stock indexes have recently hit record highs. And this comes during the historically turbulent months of September and October for the stock markets.

Some weak economic data coming out of China Thursday was a mixed bag for the precious metals markets. Industrial production, fixed-asset investment and retail sales were all lower than expected in August. The China data somewhat dented investor risk appetite. However, China is also the world’s largest raw commodity importer.

The conclusion of the Bank of England’s regular monetary policy meeting Thursday saw the BOE make no changes in its monetary policy. However, the BOE’s statement at the end of the meeting was deemed to be hawkish and suggested the central bank wants to raise interest rates sooner rather than later. That’s a slight negative for the precious metals.

A key U.S. economic data point this week was Thursday’s consumer price index report for August. That report showed a rise of 0.4%, which was slightly above market expectations. This report falls into the camp of the U.S. monetary policy hawks, who want the Federal Reserve to make another rate hike yet this year. Gold and silver prices dipped to their daily lows after this report was released.

The key outside markets on Thursday saw the U.S. dollar index lower. Meantime, Nymex crude oil futures were higher. These markets were in a bullish posture for the precious metals on this day.

Technically, December gold futures prices closed nearer the session high today. The gold bulls have the firm overall near-term technical advantage, but need to show some fresh power soon to avoid near-term technical damage. Prices are still in a nine-week-old uptrend on the daily bar chart, but now just barely. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,362.40. 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 $1,332.00 and then at $1,340.00. First support is seen at today’s low of $1,319.50 and then at $1,307.00. Wyckoff's Market Rating: 7.0

December silver futures prices closed near mid-range. The silver bulls still have the overall near-term technical advantage. Prices are in a nine-week-old uptrend on the daily bar chart. 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 $17.00. First resistance is seen at $18.00 and then at this week’s high of $18.125. Next support is seen at today’s low of $17.66 and then at $17.50. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed down 230 points at 295.80 cents today. Prices closed near mid-range and hit another three-week low today. The copper bulls still have the overall near-term technical advantage, but are fading fast. More selling pressure Friday would suggest a near-term market top is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 317.85 cents. The next downside price objective for the bears is closing prices below solid technical support at 290.00 cents. First resistance is seen at today’s high of 298.95 cents and then at 300.00 cents. First support is seen at today’s low of 293.65 cents and then at 290.00 cents. Wyckoff's Market Rating: 6.0.