(Kitco News) – Gold and silver prices are posting modest losses in early-afternoon U.S. trading Tuesday, on some profit taking and on some positive news on the U.S.-China trade front that rallied the U.S. stock market. Gold notched a six-year high and silver at a 1.5-year high overnight. December gold futures were last down $3.30 an ounce at 1,514.00. September Comex silver prices were last down $0.111 at $16.965 an ounce.
Gold prices quickly sunk at mid-morning on news reports the U.S. plans to ease off on putting new, additional tariffs on Chinese imports. U.S. trade officials said that some of the new tariffs won’t go into effect until mid-December, instead of September 1, adding that the two sides will resume trade negotiations in a couple weeks. The marketplace read this news as a positive step, including maybe the U.S. “blinking.” However, gold prices recover much of their initial losses upon further reflection. While a positive for the negotiations, this news is probably not a “break-through” on the matter.
Gold and silver prices also rebounded from stronger losses in late-morning and midday trading when reports said Hong Kong riot police were confronting demonstrators at the Hong Kong airport. President Trump also tweeted at midday that China is moving troops closer to the Hong Kong border. This situation is deteriorating, with many worried about a very ominous outcome.
Asian and European stock markets were mostly lower overnight, on risk aversion. U.S. stock indexes were solidly higher at midday but off their daily highs. This added some selling pressure to the safe-haven metals.
U.S. Treasuries and world government bond yields are dropping again. The German bund hit a new record-low yield of minus 0.617%. The U.S. dollar index rallied today and crude oil prices posted sharp gains.
Technically, December gold futures prices closed near mid-range. Prices also scored a mildly bearish “outside day” down on the daily bar chart today. The bulls still have the strong overall near-term technical advantage. A 10-week-old uptrend is in place on the daily bar chart. There are still no significant, early chart clues to suggest a market top is close at hand. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,550.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,467.00. First resistance is seen at $1,522.70 and then at $1,525.00. First support is seen at $1,500.00 and then at today’s low of $1,488.90. Wyckoff’s Market Rating: 8.0
September silver futures prices closed near mid-range today. Prices also scored a bearish “outside day” down on the daily bar chart today. The silver bulls still have the solid overall near-term technical advantage. An 11-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at today’s high of $17.49 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at today’s low of $16.51. First resistance is seen at $17.00 and then at $17.26. Next support is seen at $16.80 and then at $16.685. Wyckoff’s Market Rating: 7.5.
September N.Y. copper closed up 450 points at 263.00 cents today. Prices closed nearer the session high and scored a bullish “outside day” up on the daily bar chart. Short covering was featured. The copper bears still have the firm overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 275.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at today’s high of 263.80 cents and then at 265.00 cents. First support is seen 260.00 cents and then at today’s low of 256.70 cents. Wyckoff’s Market Rating: 2.5.
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