Gold & Silver Prices Rebound On Safe-Haven Demand, Short Covering
New York (Oct 9) Gold and silver prices were ending the U.S. day session higher, boosted by short covering in the futures markets and by some safe-haven buying interest amid stepped-up geopolitical worries. December Comex gold was last up $8.70 an ounce at $1,283.70. December Comex silver was last up $0.13 at $16.925 an ounce.
There were some significant geopolitical events occurring over the weekend. While the world stock markets have so far mostly shrugged them off as nothing new or major, the gold and silver markets did get some safe-haven buying support.
Thousands of Spaniards on Sunday protested any secession of Catalonia, after that region voted to be independent recently. The U.S. and Turkey saw a diplomatic row escalate over the weekend when both countries put restrictions on visas for the other country. The Turkish lira dropped sharply Monday on the situation.
The U.S.-North Korea war of words continued during the weekend, with both sides spouting off. President Trump said in a tweet there is only “one thing to do” with North Korea.
Trump also got into a Twitter tussle with U.S. Senator Bob Corker. Corker said the White House is like “adult daycare.” There are growing notions that the Trump White House is increasingly chaotic.
All of the above support ideas of continuing safe-haven demand for gold and to a lesser degree silver.
The U.S. dollar index was lower in early-afternoon U.S. trading, on a normal corrective pullback after hitting a 2.5-month high last Friday. The other key outside market on Monday sees Nymex crude oil futures prices firmer. Oil bulls are fading, however. There are worries recent hurricanes that struck the U.S. will curtail petroleum refining capacity, which means less demand for crude until those refineries are 100% back on line.
The U.S. government was closed for the Columbus Day holiday Monday. However, most markets were open.
Technically, December gold futures prices closed near mid-range. Bears still have the overall near-term technical advantage. A four-week-old downtrend is still in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at today’s high of $1,288.00 and then at $1,293.00. First support is seen at today’s low of $1,277.70 and then at $1,270.00. Wyckoff's Market Rating: 4.0
December silver futures prices closed near mid-range today on short covering. The silver bears still have the overall near-term technical advantage. Prices are still in a four-week-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce.
Reuters
