(Kitco News) – Gold prices are higher in early U.S. trading Monday and not far below the recent six-year high scored last week. Safe-haven demand for the yellow metal is featured to start the trading week, as protesting in Hong Kong has escalated. December gold futures were last up $9.10 an ounce at 1,517.60. September Comex silver prices were last up $0.039 at $16.965 an ounce.
There is once again major protesting by the citizens of Hong Kong, which has shut down the city’s main airport. This situation appears to be getting worse every weekend.
Market watchers wonder how long mainland China will allow the civil unrest to go on before a crackdown.
Asian and European stock markets were mostly lower overnight. U.S. stock indexes are also pointed toward lower openings when the New York day session begins. U.S. Treasury prices are also up Monday, on safe-haven demand.
China’s central bank on Monday set its currency, the yuan, exchange rate with the U.S. dollar at 7.0211, which is above the 7 level the U.S. has deemed problematic. This exchange rate will continue to be closely monitored. Most of the world marketplace views the U.S.-China trade negotiations as having deteriorated in August.
The key “outside markets” today see Nymex crude oil prices down and trading around $53.75 a barrel. The U.S. dollar index is trading slightly up in early U.S. action.
U.S. economic data due for release Monday is light and includes the monthly Treasury budget statement and the USDA monthly supply and demand report.
Technically, the gold bulls have the solid overall near-term technical advantage. A 10-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,550.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,467.00. First resistance is seen at last week’s high of $1,522.70 and then at $1,525.00. First support is seen at $1,510.00 and then at $1,500.00. Wyckoff’s Market Rating: 8.5
September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $15.935. First resistance is seen at Friday’s high of $17.14 and then at last week’s high of $17.26. Next support is seen at the overnight low of $16.80 and then at $16.685. Wyckoff’s Market Rating: 8.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
