Gold Price Sees Corrective Pullback After Scoring 5-Mo. High
New York (Dec 10) Gold prices are trading modestly lower in early-afternoon U.S. trading Monday, on a mild corrective pullback after touching a nearly five-month high overnight. Some safe-haven demand has surfaced for gold recently as world stock and financial market traders are still very uneasy. The technical chart posture for the yellow metal has also turned bullish recently. February gold futures were last down $3.70 an ounce at $1,248.60. March Comex silver was down $0.091 at $14.61 an ounce.
The key outside markets were in a bearish posture for the precious metals today. The U.S. dollar index was solidly higher, while Nymex crude oil prices were lower and trading just below $52.00.
Brexit turmoil and uncertainty regarding when and how the U.K. will depart the European Union have European stock and financial markets unsettled. Prime minister Theresa May today called off Tuesday’s vote on her Brexit plan, which most reckoned would be voted down anyway. The Euro currency sunk and the U.S. dollar index rallied following May’s announcement.
World stock markets were mostly lower today, including U.S. stock indexes. Wobbly U.S.-China trade talk prospects and new documents released late last week more strongly suggesting very high-level Trump presidential campaign staffers colluded with Russia have traders and investors uneasy to start the trading week.
Technically, the gold bulls have the overall near-term technical advantage. A four-week-old price uptrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in February futures above solid technical resistance at the July high of $1,284.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at today’s high of $1,256.60 and then at $1,260.00. First support is seen at today’s low of $1,242.60 and then at $1,235.00. Wyckoff's Market Rating: 6.0
March silver futures bears have the overall near-term technical advantage. However, bulls are working on a fledgling price uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $15.055 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $13.985.
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