Gold Holds Onto Slight Gains Despite U.S. Stock Market Rally

(Kitco News) - Gold prices are slightly up and not far below Monday’s 10-week high in early-afternoon U.S. trading Tuesday. The gold bulls are impressed their metal is able to hold gains amid a solid rally in the U.S. stock market today. December gold futures were last up $1.80 an ounce at $1,232.50. December Comex silver was last down $0.007 at $14.72 an ounce.

The near-term technical posture for gold has dramatically improved the past few sessions, which continues to invite the chart-based buyers. Also, the recent volatility in world stock markets and some heightened geopolitical tensions are continuing to provide some demand for safe-haven gold.

The rift between the U.S. and Saudi Arabia regarding a missing Saudi journalist who many think was killed by the Saudi Kingdom is still on the front burner of the marketplace. The U.S. Secretary of State is in Saudi Arabia talking to the king. President Trump over the weekend said there would be “severe punishment” of the Saudi Kingdom if it was determined it killed the journalist. Some reports are now saying a Saudi may admit to killing the journalist. This matter may be dying down a bit today but could quickly escalate, too.

The key outside markets today find the U.S. dollar index slightly lower. Meantime, November Nymex crude oil prices are slightly higher and trading just below $72.00 a barrel.

Technically, the gold 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 this week’s high of $1,236.90 in December futures and then at $1,240.00. First support is seen at $1,225.00 and then at this week’s low of $1,220.40. Wyckoff's Market Rating: 6.0

Silver prices today hit a two-week high. The silver bears still have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 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 $13.88 in December futures and then at the October high of $13.95. Next support is seen at this week’s low of $14.615 and then at $14.50. Wyckoff's Market Rating: 3.5.

December N.Y. copper closed down 80 points at 278.10 cents today. Prices closed nearer the session high 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 280.00 cents and then at this week’s high of 283.90 cents. First support is seen at today’s low of 275.80 cents and then at 272.50 cents. Wyckoff's Market Rating: 3.0.