Gold Down On Continued Scant Risk Aversion, But Iran Sanctions Could Provide Spark

(Kitco News) - Gold and silver prices were moderately lower in lackluster early-afternoon U.S. trading Monday. Summertime trading conditions has many market-makers either on vacation or thinking about theirs upcoming. Selling pressure today is related to a strong U.S. dollar. Gold is trading not far above last week’s 12-month low. December gold futures were last down $5.50 an ounce at $1,217.70. September Comex silver was last down $0.112 at $15.35 an ounce.

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The U.S. on Tuesday is bringing back economic sanctions on Iran that were lifted by the Obama administration as part of an Iran non-nuclear deal that President Trump cancelled. Likely rising tensions between the U.S. and Iran could be the next geopolitical flashpoint in the world marketplace, which could boost safe-haven gold and silver prices. Reports said Iranians are purchasing and hoarding gold on fears of a collapse in the Iranian economy.

The key “outside markets” today see Nymex crude oil prices higher and trading around $69.50 a barrel. The U.S. dollar index is higher today and is very close to its 12-month high scored a few weeks ago.

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

Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,244.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,226.00 and then at $1,230.00. First support is seen at last week’s low of $1,212.50 and then at $1,200.00. Wyckoff's Market Rating: 1.0

September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at today’s high of $15.505 and then at last week’s high of $15.635. Next support is seen at last week’s low of $15.25 and then at the July low of $15.185. Wyckoff's Market Rating: 1.5.