Gold Extends Rally, Hits 10-Week High

(Kitco News) - Gold prices are holding good gains and scored a 10-week high in early U.S. trading Monday.Some more safe-haven demand, technical buying and short covering are boostingthe yellow metal. December gold futures were last up $11.90 an ounce at $1,234.00.December Comex silver was last up $0.135 at $14.77 an ounce.

Globalstock markets were mostly lower overnight. U.S. stock indexes are pointedtoward lower openings when the New York day session begins. There is still riskaversion in the marketplace after last week’s high volatility in the worldstock markets, led by the U.S. stock indexers that hit 3.5-month lows.

Goldis getting some safe-haven buying interest due in part to the growing riftbetween the U.S. and Saudi Arabia regarding a missing Saudi journalist who manythink was killed by the Saudi Kingdom. President Trump said there would be“severe punishment” of the Saudi Kingdom if it was determined it killed thejournalist. A Saudi government official said his country could retaliateagainst the U.S. by driving crude oil up to a price of over $100 or $200 abarrel, or higher.

Thekey outside markets today find the U.S. dollar index lower on a correctivepullback from recent gains. Meantime, November Nymex crude oil prices arefirmer on a corrective bounce from recent selling pressure that begins tosuggest that market has topped out.

U.S.economic data due for release Monday includes retail sales, the Empire Statemanufacturing survey, and manufacturing and trade inventories.

Technically,gold price action last week produced a big and bullish upside “breakout” from asideways trading range on the daily bar chart. This suggests a market bottom isin place and that prices can trend sideways to higher for at least the nearterm. Gold bulls' next upside near-term price breakout objective is to producea close in December futures above solid resistance at $1,250.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,200.00. First resistance is seen at today’s high of $1,236.90and then at $1,240.00. First support is seen at $1,225.00 and then at today’slow of $1,220.40. Wyckoff's Market Rating: 6.0

Decembersilver futures bears still have the overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Septemberlow of $13.965. First resistance is seen at the overnight high of $14.805 andthen at the October high of $14.95. Next support is seen at $14.54 and then at lastweek’s low of $14.255. Wyckoff's Market Rating: 3.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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