Gold Price Holds Onto Slight Gains Despite US Stock Market Rally

New York (Oct 16)  Gold prices are slightly up and not far below Monday’s 10-week high in early-afternoon U.S. trading Tuesday. The gold bulls are impressed their metal is able to hold gains amid a solid rally in the U.S. stock market today. December gold futures were last up $1.80 an ounce at $1,232.50. December Comex silver was last down $0.007 at $14.72 an ounce.

The near-term technical posture for gold has dramatically improved the past few sessions, which continues to invite the chart-based buyers. Also, the recent volatility in world stock markets and some heightened geopolitical tensions are continuing to provide some demand for safe-haven gold.

The rift between the U.S. and Saudi Arabia regarding a missing Saudi journalist who many think was killed by the Saudi Kingdom is still on the front burner of the marketplace. The U.S. Secretary of State is in Saudi Arabia talking to the king. President Trump over the weekend said there would be “severe punishment” of the Saudi Kingdom if it was determined it killed the journalist. Some reports are now saying a Saudi may admit to killing the journalist. This matter may be dying down a bit today but could quickly escalate, too.

The key outside markets today find the U.S. dollar index slightly lower. Meantime, November Nymex crude oil prices are slightly higher and trading just below $72.00 a barrel.

Technically, the gold bulls have the overall near-term technical advantage for the first time in months. Gold bulls' next upside near-term price breakout objective is to produce a close 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.

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