Gold Sees Modest Gains From Weaker Stock Markets and Sliding Greenback

(Kitco News) - Gold prices were modestly up and down from the daily high in early-afternoon U.S.trading Monday. The safe-haven metal saw mild benefit from a bit of riskaversion seen in the marketplace as well as a weaker U.S. dollar today.December gold futures were last up $3.50 an ounce at $1,204.70. December Comex silver was last down $0.009 at $14.35 an ounce.

Thegold market extended early gains and hit its daily high in late-morningdealings. The yellow metal was supported by a weaker U.S. dollar index andlower world stock markets to start the trading week. U.S.-China trade tensionsare back on the front burner after China accused President Trump of being atrade bully and cancelled trade talks that had been set up for this week. Andtariffs on $200 billion more in Chinese imports to the U.S. are set to kick intoday. That has the marketplace somewhat unsettled. Stocks markets in China,Japan and South Korea were closed Monday for a holiday.

Also,news the U.S. Deputy Attorney General Rod Rosenstein is set to be fired byPresident Trump was slightly supporting the safe-haven metal.

Perceivedbargain hunting in the cash market and some short covering in the futuresmarket were also featured today, amid ideas the gold market has put in at leasta near-term price bottom.

Thebig news in the metals industry today saw Barrick Gold Corp. move to acquire RandgoldResources Ltd. in an all-stock merger that will create the largest gold-miningcompany in the world. The new company would have market capitalization ofaround $18 billion.

Focusthis week will also be the Federal Reserve's two-day Open Market Committee(FOMC) meeting that begins Tuesday. The FOMC is expected to slightly raise U.S.interest rates at this meeting. Fed Chairman Jerome Powell will also hold apress conference after the meeting.

Technically,the gold bears still have the overall near-term technical advantage. However,prices have been trading sideways for the past month, which begins to suggest amarket bottom is in place. Gold bulls' next upside near-term price breakoutobjective is to produce a close in December futures above solid technicalresistance at $1,220.70. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at the August low of$1,167.10. First resistance is seen at $1,210.00 and then at $1,215.80. Firstsupport is seen at today's low of $1,198.60 and then at $1,192.70. Wyckoff'sMarket Rating: 3.0

Thesilver bears still have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing December prices abovesolid technical resistance at $15.07 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $13.50. Firstresistance is seen at last week's high of $14.465 and then at $14.59. Nextsupport is seen at $14.18 and then at last week's low of $14.065. Wyckoff'sMarket Rating: 2.0.

DecemberN.Y. copper closed down 230 points at 283.45 cents today. Prices closed nearerthe session high today and saw profit taking after hitting a seven-week highlast Friday. The copper bears still have the overall near-term technicaladvantage, but recent good gains suggest a market bottom is in place. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at the 295.00 cents. The next downside price objective forthe bears is closing prices below solid technical support at the August low of257.45 cents. First resistance is seen at last week's high of 287.10 cents andthen at 290.00 cents. First support is seen at 280.00 cents and then at today'slow of 286.70 cents. 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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