Gold Prices Pressured By Upbeat Trader/Investor Attitudes

(Kitco News) - Gold prices were ending the U.S. day session solidly down and hit a three-week low Monday. Keener investor and trader risk appetites have hit the gold market hard the past week. Since the early-September high of $1,362.40, gold prices have lost around $50.00 an ounce. December Comex gold was last down $14.00 an ounce at $1,311.10. December Comex silver prices were last down $0.511 at $17.185 an ounce.

Featured activity in the gold and silver markets today were profit taking from the shorter-term futures traders, as well as the abandoning of long futures positions that were established above present price levels (long liquidation).

Global stock markets were mostly firmer Monday. U.S. stock indexes are at or near record highs. The higher stock markets worldwide attest to the keener risk-on attitudes among traders and investors at present.

The markets’ highlight of the week is the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. Fed Chair Janet Yellen also has a press conference just after the FOMC meeting. No interest rate changes are expected from the FOMC at this meeting. However, it is expected the Fed will announce it is drawing down its balance sheet of securities.

President Trump speaks in front of the United Nations in New York Tuesday. It’s expected that Trump will talk about North Korea’s missile program. Trump also spoke before the U.N. Monday, but made no mention of North Korea.

The key outside markets on Monday saw the U.S. dollar index higher and Nymex crude oil futures modestly lower. These important markets were also in a bearish daily posture for the precious metals markets.

Technically, December gold futures prices closed nearer the session low today. The gold bulls still have the overall near-term technical advantage, but have faded and now need to show fresh power soon to avoid serious near-term technical damage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,340.00. 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 $1,324.00 and then at $1,331.00. First support is seen at $1,307.00 and then at $1,300.00. Wyckoff's Market Rating: 6.5

December silver futures prices closed nearer the session low and hit a three-week low today. The silver bulls still have the overall near-term technical advantage, but are fading fast. A nine-week-old uptrend on the daily bar chart was negated today. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the September high of $18.29 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at $17.50 and then at today’s high of $17.675. Next support is seen at today’s low of $17.11 and then at $17.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 195 points at 296.85 cents today. Prices closed near mid-range on short covering and bargain hunting. Prices Friday hit a three-week low. The copper bulls still have the overall near-term technical advantage, but have faded recently. More selling pressure this week 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 280.00 cents. First resistance is seen at 300.00 cents and then at 304.00 cents. First support is seen at last week’s low of 293.10 cents and then at 290.00 cents. Wyckoff's Market Rating: 6.0.