Gold Prices Power To 10-Week High, More Upside Likely

(Kitco News)- Gold prices are holding moderate gains in early-afternoon U.S. trading Monday. Early on,prices hit a 10-week high. Some more safe-haven demand, technical buying andshort covering are boosting the yellow metal again today. The bulls havetechnical strength and momentum to suggest more gains are coming in the nearterm. December gold futures were last up $8.00 an ounce at $1,230.40. DecemberComex silver was last up $0.09 at $14.72 an ounce.

Globalstock markets were mostly lower today. U.S. stock indexes are modestly down atmidday. There is still risk aversion in the marketplace after last week’s highvolatility in the world stock markets, led by the U.S. stock indexers that hit3.5-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. President Trump Monday sent his secretary of state to meetwith the Saudi king to try to resolve the matter. Trump said the king calledhim and flatly denied involvement in the journalist’s disappearance.

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

Technically,December gold futures last week saw a bullish upside “breakout” from a sidewaystrading range on the daily bar chart. This suggests a price uptrend can besustained, probably at least into the end of this year. The bulls have the overallnear-term technical advantage for the first time in months. Gold bulls' nextupside near-term price breakout objective is to produce a close above solidtechnical resistance at $1,250.00. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,200.00. First resistance is seen at today’s high of $1,236.90 and then at$1,240.00. First support is seen at $1,225.00 and then at today’s low 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 the October high of $14.95 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at the September low of $13.965. First resistance is seen at today’shigh of $13.805 and then at $13.95. Next support is seen at $14.50 and then atlast week’s low of $14.255. Wyckoff's Market Rating: 3.5.

December N.Y. copper closed up 50 points at 280.55cents today. Prices closed nearer the session low today. The copper bears havethe overall near-term technical advantage. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at the290.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at the August low of 257.45 cents. Firstresistance is seen at today’s high of 283.90 cents and then at 285.00 cents. Firstsupport is seen at Friday’s low of 277.45 cents and then at 275.00 cents.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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