Gold Prices Power To 10-Week High, More Upside Likely

(Kitco News) - Gold prices are holding moderate gains in early-afternoon U.S. trading Monday. Early on, prices hit a 10-week high. Some more safe-haven demand, technical buying and short covering are boosting the yellow metal again today. The bulls have technical strength and momentum to suggest more gains are coming in the near term. December gold futures were last up $8.00 an ounce at $1,230.40. December Comex silver was last up $0.09 at $14.72 an ounce.

Global stock markets were mostly lower today. U.S. stock indexes are modestly down at midday. There is still risk aversion in the marketplace after last week’s high volatility in the world stock markets, led by the U.S. stock indexers that hit 3.5-month lows.

Gold is getting some safe-haven buying interest due in part to the growing rift between the U.S. and Saudi Arabia regarding a missing Saudi journalist who many think was killed by the Saudi Kingdom. President Trump said there would be “severe punishment” of the Saudi Kingdom if it was determined it killed the journalist. A Saudi government official said his country could retaliate against the U.S. by driving crude oil up to a price of over $100 or $200 a barrel, or higher. President Trump Monday sent his secretary of state to meet with the Saudi king to try to resolve the matter. Trump said the king called him and flatly denied involvement in the journalist’s disappearance.

The key outside markets today find the U.S. dollar index lower on a corrective pullback from recent gains. Meantime, November Nymex crude oil prices are slightly firmer on a corrective bounce from recent selling pressure that still suggests the market has topped out.

Technically, December gold futures last week saw a bullish upside “breakout” from a sideways trading range on the daily bar chart. This suggests a price uptrend can be sustained, probably at least into the end of this year. The bulls have the overall near-term technical advantage for the first time in months. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. 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 $1,236.90 and then at $1,240.00. First support is seen at $1,225.00 and then at today’s low of $1,220.40. Wyckoff's Market Rating: 6.0.

December silver futures bears still have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $14.95 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at today’s high of $13.805 and then at $13.95. Next support is seen at $14.50 and then at last week’s low of $14.255. Wyckoff's Market Rating: 3.5.

December N.Y. copper closed up 50 points at 280.55 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the 290.00 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 today’s high of 283.90 cents and then at 285.00 cents. First support is seen at Friday’s low of 277.45 cents and then at 275.00 cents. Wyckoff's Market Rating: 3.5.