Gold Prices Power To 3-Mo. High On Safe-Haven Demand

(Kitco News) - Gold prices aresolidly higher and have hit a nearly three-month high in early U.S. tradingTuesday, boosted by safe-haven demand amid keener geopolitical uncertainty inthe marketplace. December gold futures were last up $17.20 an ounce at $1,241.70.December Comex silver was last up $0.223 at $14.805 an ounce.

Buckleyour seat belts today, folks. Global stock markets were mostly lower overnightas risk aversion has returned to the marketplace amid geopolitical tensions.China’s stock indexes were sharply down after good gains posted Monday. SouthKorea’s and Japan’s stock markets were also sharply lower. U.S. stock indexesare pointed toward solidly lower openings when the New York day session begins.The U.S. indexes are back near their October lows.

TheS&P 500 stock index has just dropped below what was strong chart support atits October low. Such suggests a new leg down in prices is coming for the U.S.stock market. That’s bullish for hard assets such as gold and silver.

TheTurkish president went on television overnight to explain that the Saudijournalist that was killed in a Saudi consulate in Istanbul was brutally slainin a planned attack. The Saudi kingdom denies involvement in the murder. TheU.S. and other Western nations are trying to get to the bottom of the matter,but President Trump has been cautious about the situation, what with the strongU.S. business ties to Saudi Arabia.

TheChina-U.S. trade showdown is negatively impacting China’s economy and weighingon Asia’s stock markets. Two U.S. warships are presently traveling near Chinaand through the Taiwan Strait, to amplify tensions.

Thursday’sEuropean Central Bank regular monetary policy meeting will be closely watchedby the marketplace. No change in EU monetary policy is expected, but ECB chiefMario Draghi’s press conference could provide clues on future moves by thecentral bank. Also, Draghi could comment on the rift between Italy’s newgovernment and the EU. European stock markets are wobbly this week as theItalian government is scoffing at EU budget rules.

TheU.S. economic highlight this week will be the first estimate of third-quarterGDP due out Friday morning. GDP is seen up 3.4% in the third quarter, on anannual basis.

Thekey outside markets today find the U.S. dollar index weaker. Meantime, NovemberNymex crude oil prices are lower and trading just above $68.00 a barrel.

U.S.economic data due for release Tuesday includes the weekly Johnson Redbook andGoldman Sachs retail sales reports, and the Richmond Fed business survey.

Technically,gold bulls have the near-term technical advantage and gained more power todayas prices saw a bullish upside “breakout” from the recent sideways tradingrange. Bulls’ next upside price objective is to produce a close in Decemberfutures above solid resistance at $1,275.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at $1,220.00.First resistance is seen at $1,250.00 and then at $1,260.00. First support is seenat $1,236.90 and then at $1,230.00. Wyckoff's Market Rating: 6.5

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 last week’s high of $14.88 and thenat the October high of $14.95. Next support is seen at the overnight low of$14.54 and then at last week’s $14.47. Wyckoff's Market Rating: 4.0.

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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