(Kitco News) - Gold prices are sharply higher and back near this week’s 6.5-year high in midday U.S. trading. Meantime, the silver market is on fire with gains over around 50 cents and hit another two-year high. Safe-haven demand has kicked into high gear again as geopolitics is back on the front burner of the world marketplace. December gold futures were last up $14.60 an ounce at 1,551.80. December Comex silver prices were last up $0.48 at $18.265 an ounce.
The U.S. stock market is selling off on reports that an influential Chinese writer or publication, Hu Xijin, has tweeted that the Chinese government has implemented 20 new measures to stimulate domestic commerce and reduce the reliance on the outside world, and especially the United States. China watchers said this publication has in the past accurately reflected the views of the Chinese government. The tweet appears to contradict President Trump’s comments Monday that the U.S. and China are moving ahead on trade negotiations after China officials made a telephone call to U.S. trade officials. China has ostensibly denied making any initial phone call. It appears the world’s two-largest economies remain in a cold war, and that’s bullish for safe-haven assets like the precious metals.
There are other elements lingering that could quickly induce more headaches for the world marketplace, including civil unrest in Hong Kong, and instability in the Persian Gulf and in Venezuela. The months of September and October are right around the corner, which have been problematic for the stock market in the past. And this year the U.K. is scheduled to leave the European Union (Brexit) in October—so far without a planned departure.
In overnight news, another report showed weakening world economic growth, as Germany’s second-quarter gross domestic product was down 0.1%. Germany auctioned is two-year note for a yield of minus 0.89% today, which is a record low.
The key “outside markets” today see Nymex crude oil prices up and trading around $54.00 a barrel. The U.S. dollar index is slightly weaker.
Technically, December gold futures prices closed nearer the session high today. The bulls have the strong overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. There are no significant, early chart clues to suggest a market top is close at hand. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,600.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,500.00. First resistance is seen at this week’s high of $1,565.00 and then at $1,575.00. First support is seen at today’s low of $1,535.30 and then at $1,523.00. Wyckoff's Market Rating: 8.5.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188)
December silver futures prices closed near the session high today and hit a two-year high. The silver bulls have the strong overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at this week’s low of $17.64. First resistance is seen at today’s high of $18.33 and then at $18.50. Next support is seen at $18.00 and then at $17.90. Wyckoff's Market Rating: 8.5.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
