Gold Slightly Down Amid Scant Risk Aversion
(Kitco News)- Gold and silver prices are slightly lower in early U.S. trading Monday. The worldmarketplace is quieter to start the trading week, with little risk aversionamong traders and investors. That's a bearish element for the safe-haven goldand silver markets. Gold prices are also seeing a mild corrective pullbackfollowing strong gains Friday that produced a technically bullish weekly highclose, to further suggest a near-term market bottom is in place for the yellowmetal. December gold futures were last down $1.40 an ounce at $1,212.80. DecemberComex silver was last down $0.031 at $14.87 an ounce.
Worldstock markets were mostly higher overnight. U.S. stock indexes are pointedtoward firmer openings when the New York day session begins. U.S. stock indexesare at multi-month highs, to underscore the keener risk appetite in themarketplace at present.
Asianmarkets were supported overnight by moves by China's central bank to stabilizeits currency, the yuan. The yuan in recent weeks had depreciated against theU.S. dollar.
Reportsover the weekend said the U.S. and Mexico could reach a deal on trade (NAFTA2.0)as soon as today.
Inother overnight news, the closely watched German Ifo business sentiment surveyrose more than expected in August, at 103.8 versus 101.7 in July.
Thekey outside markets today find the U.S. dollar index slightly lower. Meantime, Nymexcrude oil prices are near steady and trading around $68.50 a barrel.
U.S.economic data due for release Monday includes the Chicago Fed national activityindex and the Texas manufacturing outlook survey.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bears still have the overall near-term technical advantage but a pricedowntrend on the daily bar chart is now in jeopardy. Gold bulls' next upsidenear-term price breakout objective is to produce a close in December futuresabove solid resistance at $1,226.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at the August low of $1,167.10.First resistance is seen at last week's high of $1,215.40 and then at $1,220.00.First support is seen at the overnight low of $1,209.30 and then at $1,200.00.Wyckoff's Market Rating: 2.5.
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
December silver futures bears have the overallnear-term technical advantage. Silver bulls' next upside price breakoutobjective is closing prices above solid technical resistance at $15.50 anounce. The next downside price breakout objective for the bears is closingprices below solid support at $14.00. First resistance is seen at last week'shigh of $14.965 and then at $15.00. Next support is seen at last week's low of$14.555 and then at the August low of $14.405. Wyckoff's Market Rating: 2.5.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.