Gold prices up as risk appetite wanes
New York (Oct 14) Gold and silver prices are higher in early U.S. trading Monday, on some safe-haven demand as trader and investor risk aversion is keener to start the trading week. December gold futures were last up $10.10 an ounce at 1,498.50. December Comex silver prices were last up $0.096 at $17.64 an ounce.
Asian and European stock markets were mostly weaker overnight. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. The shine of Friday afternoon’s U.S.-China “Phase 1” trade agreement has quickly worn off. After having the weekend to ponder the matter traders and investors now reckon the agreement is fraught with potholes that are likely derail it. There are now reports China wants more talks before even signing the Phase 1 agreement. “The devil is in the details,” as the saying goes.
Also, the optimism expressed late last week regarding a U.K.-European Union agreement on Brexit has dimmed.
There was more dour economic news coming out of China to start the trading week. China’s exports to the U.S. dropped 22% in September, year-on-year. China’s total exports fell 3.2% in the month. China’s total imports in September were down 8.5%.
All of the above are producing some new safe-haven demand for the gold and silver markets.
Nymex crude oil prices are lower and trading around $53.50 a barrel today. The other key “outside market” sees the U.S. dollar index modestly up in early U.S. trading.
There is no major U.S. economic data due for release Monday, as banks and the U.S. government are closed for the Columbus Day holiday.
Live 24 hours gold chart [Kitco Inc.]
Technically, the gold bulls have the overall near-term technical advantage. Still, a five-week-old downtrend line is in place on the daily bar chart and needs to be negated to give the bulls fresh technical strength. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00.
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