Gold market performs quite well despite bearish outside forces

(Kitco News) - Gold and silver prices are near steady in midday U.S. trading Monday. Both safe-haven metals are showing keen resilience amid rallying world stock markets that saw the U.S. indexes score new record highs today. A firmer U.S. dollar index today was also a negative outside market factor for the precious metals. December gold futures were last up $0.20 an ounce at 1,511.60. December Comex silver prices were last up $0.018 at $18.07 an ounce.

There are underlying bullish elements at work in favor of the gold and silver market bulls. Nymex crude oil prices hit a six-week high today and the U.S. dollar index is still wobbly despite today’s gains. Also, chart postures remain overall bullish for both precious metals.

Trader and investor risk appetite remains upbeat at present, amid no major geopolitical hotspots that are flaring up to rattle the world marketplace. Adding to upbeat attitudes are the latest reports on the U.S.-China trade front that say a partial deal is close to being signed. However, don’t be surprised if the calm in the world marketplace quickly evaporates at some point by a geopolitical surprise.

Technically, December gold futures prices were mid-range at midday and are still in a choppy trading range. The bulls still have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,543.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,520.90 and then at $1,525.00. First support is seen at $1,500.00 and then at $1,490.00. Wyckoff's Market Rating: 6.5

December silver futures prices were near mid-range at midday today. The silver bulls have the overall near-term technical advantage. A five-week-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 the October high of $18.35 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.18. First resistance is seen at $18.25 and then at $18.35. Next support is seen at last week’s low of $17.59 and then at $17.44. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed up 190 points at 267.20 cents today. Prices closed nearer the session high today. The copper bulls have the slight overall near-term technical advantage as prices have been trending up for five weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 270.65 cents. The next downside price objective for the bears is closing prices below solid technical support at 254.00 cents. First resistance is seen at the September high of 270.65 cents and then at 273.00 cents. First support is seen at today’s low of 265.35 cents and then at last week’s low of 262.80 cents. Wyckoff's Market Rating: 5.5.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com