Gold Sees Modest Gains From Weaker Stock Markets and Sliding Greenback

(Kitco News) - Gold prices were modestly up and down from the daily high in early-afternoon U.S. trading Monday. The safe-haven metal saw mild benefit from a bit of risk aversion seen in the marketplace as well as a weaker U.S. dollar today. December gold futures were last up $3.50 an ounce at $1,204.70. December Comex silver was last down $0.009 at $14.35 an ounce.

The gold market extended early gains and hit its daily high in late-morning dealings. The yellow metal was supported by a weaker U.S. dollar index and lower world stock markets to start the trading week. U.S.-China trade tensions are back on the front burner after China accused President Trump of being a trade bully and cancelled trade talks that had been set up for this week. And tariffs on $200 billion more in Chinese imports to the U.S. are set to kick in today. That has the marketplace somewhat unsettled. Stocks markets in China, Japan and South Korea were closed Monday for a holiday.

Also, news the U.S. Deputy Attorney General Rod Rosenstein is set to be fired by President Trump was slightly supporting the safe-haven metal.

Perceived bargain hunting in the cash market and some short covering in the futures market were also featured today, amid ideas the gold market has put in at least a near-term price bottom.

The big news in the metals industry today saw Barrick Gold Corp. move to acquire Randgold Resources Ltd. in an all-stock merger that will create the largest gold-mining company in the world. The new company would have market capitalization of around $18 billion.

Focus this week will also be the Federal Reserve's two-day Open Market Committee (FOMC) meeting that begins Tuesday. The FOMC is expected to slightly raise U.S. interest rates at this meeting. Fed Chairman Jerome Powell will also hold a press conference after the meeting.

Technically, the gold bears still have the overall near-term technical advantage. However, prices have been trading sideways for the past month, which begins to suggest a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid technical resistance at $1,220.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at $1,210.00 and then at $1,215.80. First support is seen at today's low of $1,198.60 and then at $1,192.70. Wyckoff's Market Rating: 3.0

The silver bears still have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing December prices above solid technical resistance at $15.07 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at last week's high of $14.465 and then at $14.59. Next support is seen at $14.18 and then at last week's low of $14.065. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 230 points at 283.45 cents today. Prices closed nearer the session high today and saw profit taking after hitting a seven-week high last Friday. The copper bears still have the overall near-term technical advantage, but recent good gains suggest a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the 295.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at last week's high of 287.10 cents and then at 290.00 cents. First support is seen at 280.00 cents and then at today's low of 286.70 cents. Wyckoff's Market Rating: 4.0.