Good Sign For Gold Bulls: Gains Despite Greenback Rally
(Kitco News) - Gold and silver prices aremodestly up in early-afternoon U.S. trading Tuesday, on mild rebounds after goldhit a nearly 1.5-year low and silver a two-year low on Monday. An encouragingsign for the precious metals bulls is that their markets were able to sustaingains today despite a solid rally in the U.S. dollar index to a 14-month high. December gold futures were last up $3.30 an ounce at $1,202.20. September Comex silver was last up $0.063 at $15.045 an ounce.
Thecurrency markets stabilized a bit today, following Monday's and recent priceaction that have seen the world's secondary currencies seriously depreciateagainst the U.S. dollar-especially the Turkish lira. Still, this matter is ofserious concern to traders and investors as they worry about a contagion-typescenario that has gripped currency markets in recent history. Gold and silvertraders have been frustrated their safe-haven metals have not benefitted fromthis situation-at least not yet.
Economicdata released by China shows the world's second-largest economy is seeing itsrate of growth slowing, due in part to the trade war with the U.S. Fixed-investmentspending in China grew by 5.5% in the first half of the year, which is theslowest pace in nearly 20 years. Last year's investment rate was 8.3% for thesame time period. Retail sales in China also slipped a bit in July. This newsis a bit bearish for gold and silver, as China is a leading importer andconsumer of metals.
Theother key outside market today finds Nymex crude oil prices higher and tradingjust above $67.00 a barrel. Oil prices hit a six-week low on Monday and pricesare in a near-term downtrend.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bears have the solid overall near-term technical advantage amid a pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at $1,226.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,150.00. Firstresistance is seen at $1,212.50 and then at Monday's high of $1,221.40. Firstsupport is seen at Monday's low of $1,198.60 and then at $1,190.00. Wyckoff'sMarket Rating: 1.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Septembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $15.00. Firstresistance is seen at Monday' high of $15.345 and then at $15.50. Next supportis seen at Monday's low of $14.97 and then at $14.75. Wyckoff's Market Rating:1.0.
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.