Gold Prices Lifted By Geopolitical Worries

(Kitco News) - Gold prices aretrading modestly higher in early-afternoon U.S. trading Thursday. Today, a hostof worries on the geopolitical front rose to the surface to put strong pressureon the U.S. stock market and produce some safe-haven demand for gold, whichbegan to surface in late-morning action. December gold futures were last up $3.00an ounce at $1,230.50. December Comex silver was last down $0.043 at $14.62 anounce.

SaudiArabia, U.S.-China relations, the European Union and rising bond yields spookedthe marketplace today.

Tradersand investors are awaiting the results of a Turkish investigation into thedisappearance of a Saudi journalist. The Turks say the journalist was killedand the Saudis deny knowing anything about it. This matter is likely to come toa head in the next few days, with President Trump saying results of theinvestigation are likely yet this week. If the Saudis are complicit,ramifications for the world markets will be significant. Some press reports saythe Saudis killed the journalist. Just today, U.S. Secretary Mnuchin has justpulled out of a business conference in Saudi Arabia, following the lead ofseveral U.S. business executives.

Thereare also new concerns about the viability of the European Union as Italy makeswaves about falling in line with EU by-laws.

U.S.Treasury bond yields are on the rise again following FOMC minutes releasedWednesday afternoon that were deemed a bit hawkish on U.S. monetary policy.

Anda former U.S. Federal Reserve official, Stanley Fisher, today warned about thenegative economic impact of a protracted trade war between the U.S. and China.

Thekey outside markets today find the U.S. dollar index higher on safe-havenbuying and a slumping Euro currency. Meantime, November Nymex crude oil pricesare lower, hit a four-week low and are trading just above $69.00 a barrel.Brent crude oil has now fallen below the $80.00-per-barrel level. Rising U.S.oil stockpiles this week are bearish for the oil market.

Technically,the gold bulls have the overall near-term technical advantage. Gold bulls' nextupside near-term price breakout objective is to produce a close in Decemberfutures above solid technical resistance at $1,250.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,200.00. First resistance is seen at today's high of $1,233.60 andthen at this week's high of $1,236.90. First support is seen at this week's lowof $1,220.40 and then at $1,212.00. Wyckoff's Market Rating: 6.0

Thesilver bears have the overall near-term technical advantage. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at $15.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the September low of$13.965. First resistance is seen at this week's high of $13.88 and then at theOctober high of $13.95. Next support is seen at today's low of $14.47 and thenat the October low of $14.255. Wyckoff's Market Rating: 3.0.

DecemberN.Y. copper closed down 310 points at 274.70 cents today. Prices closed nearmid-range today. The copper bears have the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the 290.00 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat the August low of 257.45 cents. First resistance is seen at today's high of278.20 cents and then at Wednesday's high of 280.45 cents. First support isseen at today's low of 272.60 cents and then at the October low of 271.30cents. Wyckoff's Market Rating: 3.0.

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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