(Kitco News) – Gold prices are trading modestly higher in early-afternoon U.S. trading Thursday. Today, a host of worries on the geopolitical front rose to the surface to put strong pressure on the U.S. stock market and produce some safe-haven demand for gold, which began to surface in late-morning action. December gold futures were last up $3.00 an ounce at $1,230.50. December Comex silver was last down $0.043 at $14.62 an ounce.
Saudi Arabia, U.S.-China relations, the European Union and rising bond yields spooked the marketplace today.
Traders and investors are awaiting the results of a Turkish investigation into the disappearance of a Saudi journalist. The Turks say the journalist was killed and the Saudis deny knowing anything about it. This matter is likely to come to a head in the next few days, with President Trump saying results of the investigation are likely yet this week. If the Saudis are complicit, ramifications for the world markets will be significant. Some press reports say the Saudis killed the journalist. Just today, U.S. Secretary Mnuchin has just pulled out of a business conference in Saudi Arabia, following the lead of several U.S. business executives.
There are also new concerns about the viability of the European Union as Italy makes waves about falling in line with EU by-laws.
U.S. Treasury bond yields are on the rise again following FOMC minutes released Wednesday afternoon that were deemed a bit hawkish on U.S. monetary policy.
And a former U.S. Federal Reserve official, Stanley Fisher, today warned about the negative economic impact of a protracted trade war between the U.S. and China.
The key outside markets today find the U.S. dollar index higher on safe-haven buying and a slumping Euro currency. Meantime, November Nymex crude oil prices are 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’ next upside near-term price breakout objective is to produce a close in December futures above solid technical resistance at $1,250.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,233.60 and then at this week’s high of $1,236.90. First support is seen at this week’s low of $1,220.40 and then at $1,212.00. Wyckoff’s Market Rating: 6.0
The silver bears have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the 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 the October high of $13.95. Next support is seen at today’s low of $14.47 and then at the October low of $14.255. Wyckoff’s Market Rating: 3.0.
December N.Y. copper closed down 310 points at 274.70 cents today. Prices closed near mid-range today. The copper bears have the overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at today’s high of 278.20 cents and then at Wednesday’s high of 280.45 cents. First support is seen at today’s low of 272.60 cents and then at the October low of 271.30 cents. Wyckoff’s Market Rating: 3.0.
By Jim Wyckoff
For Kitco News