Gold Pushes To 3-Mo. High As World Stock Markets Sell Off

(Kitco News) - Gold prices arehigher in Tuesday afternoon trading, and earlier today hit a nearly three-monthhigh. The yellow metal was boosted by safe-haven demand amid keenergeopolitical uncertainty in the marketplace. Gold prices did back off theirdaily highs as the U.S. stock indexes moved up from their daily lows. December gold futures were last up $11.30 an ounce at $1,236.00. December Comex silver was last up $0.208 at $14.795 an ounce.

Globalstock markets saw risk aversion return to the marketplace today amid heightenedgeopolitical tensions. China’s stock indexes were sharply down after good gainsposted Monday. South Korea’s and Japan’s stock markets were also sharply lower.

TheS&P 500 stock index today dropped below what was strong chart support atits October low. This 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 sharply lower and trading around $66.50 a barrel.

Technically,the gold bulls have the overall near-term technical advantage and gained morepower today as prices saw a bullish upside “breakout” from the recent sidewaysand choppy trading range. Gold bulls' next upside near-term price breakoutobjective is to produce a close in December futures above solid technicalresistance at $1,275.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,220.00. Firstresistance is seen at today’s high of $1,243.00 and then at $1,250.00. Firstsupport is seen at today’s low of $1,224.50 and then at $1,220.00. Wyckoff'sMarket Rating: 6.5

Decembersilver futures prices closed nearer the session high today and closed at anearly two-month high close. The silver bears still have the slight overallnear-term technical advantage. However, the bulls are working on restarting aprice uptrend on the daily chart. Silver bulls' next upside price breakoutobjective is closing prices above solid technical resistance at $15.00 anounce. The next downside price breakout objective for the bears is closingprices below solid support at the September low of $13.965. First resistance isseen at last week’s high of $13.88 and then at the October high of $13.95. Nextsupport is seen at today’s low of $14.54 and then at last week’s low of $14.47.Wyckoff's Market Rating: 4.5.

DecemberN.Y. copper closed down 260 points at 275.95 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 closing pricesabove solid technical resistance at the 290.00 cents. The next downside priceobjective for the bears is closing prices below solid technical support at theAugust low of 257.45 cents. First resistance is seen at today’s high of 278.50cents and then at 280.00 cents. First support is seen at today’s low of 273.90cents and then at the October low of 271.30 cents. 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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