Gold Down On Continued Scant Risk Aversion, But Iran Sanctions Could Provide Spark

(Kitco News)- Gold and silver prices weremoderately lower in lackluster early-afternoon U.S. trading Monday. Summertimetrading conditions has many market-makers either on vacation or thinking abouttheirs upcoming. Selling pressure today is related to a strong U.S. dollar.Gold is trading not far above last week’s 12-month low. December gold futures were last down $5.50 an ounce at $1,217.70. September Comex silver was lastdown $0.112 at $15.35 an ounce.

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TheU.S. on Tuesday is bringing back economic sanctions on Iran that were lifted bythe Obama administration as part of an Iran non-nuclear deal that PresidentTrump cancelled. Likely rising tensions between the U.S. and Iran could be thenext geopolitical flashpoint in the world marketplace, which could boostsafe-haven gold and silver prices. Reports said Iranians are purchasing andhoarding gold on fears of a collapse in the Iranian economy.

Thekey “outside markets” today see Nymex crude oil prices higher and tradingaround $69.50 a barrel. The U.S. dollar index is higher today and is very closeto its 12-month high scored a few weeks ago.

Therewere no major U.S. economic reports released today.

Technically,gold bears have the solid overall near-term technical advantage amid a pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at $1,244.70. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,200.00. Firstresistance is seen at today’s high of $1,226.00 and then at $1,230.00. Firstsupport is seen at last week’s low of $1,212.50 and then at $1,200.00.Wyckoff's Market Rating: 1.0

Septembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $16.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $15.00. Firstresistance is seen at today’s high of $15.505 and then at last week’s high of$15.635. Next support is seen at last week’s low of $15.25 and then at the Julylow of $15.185. Wyckoff's Market Rating: 1.5.

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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