Gold, money collected on purchase of safe haven; more likely

Editor's note: to be caught
minutes with our quick summary of the news to read absolutely and expertly
opinions that have displaced precious metals and financial markets. Register here!

(Kitco News) – Gold and silver prices are significantly higher on Monday at the US trading session, at the request of the shelters, following a terrorist terrorist drama that paralyzed the oil industry Saudi. Some metal market watchers are scratching their heads and wondering why prices have not rallied more strongly on news. However, this case is far from over and it is likely that both metals will generate greater interest in short-term purchases at this major geopolitical event. December gold futures were up $ 10.90 per ounce at $ 1,510.50. In December, silver prices in the Comex were up $ 0.396, to $ 17.965 an ounce.

Risk aversion is very strong in the market early this week, after the weekend's terrorist drone attacks against Saudi oil facilities, which quickly removed nearly 6 million barrels of oil production per year. day. This represents about 5% of world crude oil production. This is the biggest success story in the modern history of global crude oil production. The United States said today that Iran had launched drone strikes. President Trump said the United States was "locked and loaded" to respond to the situation. After repelling military action when Iran shot down an American drone, it is unlikely that Trump will stop the military action this time around.

The Asian and European stock markets have been mixed mostly down. US stock indexes are down around noon. Other safe haven assets, including the US dollar, US Treasuries and the Japanese yen, were all in rallying mode on Monday.

Nymex crude oil prices are up sharply and are trading around $ 7.50 per barrel at around $ 62.25. October Nymex crude futures reached a record $ 63.34 overnight. Brent crude reached a record high of $ 71.95 a barrel, up nearly 20% at some point in early trading on Monday, but prices fell back from that level. President Trump has authorized the release of oil from the US strategic oil reserve, if necessary, totaling more than 600 million barrels. This is the biggest geopolitical hot spot to have impacted the global marketplace for some time.

The sharp rise in oil prices could undermine central bank monetary policies, which until now have been very easy to adopt. The sharp rise in oil prices immediately raises fears of rising inflation, which could hamper the easing of central bank monetary policy as part of efforts to boost global economic growth. The Federal Reserve's FOMC is meeting this week and is expected to lower US interest rates slightly.

If this type of major attack against the world's leading oil exporter occurred just 10 years ago, the global market would be much more disrupted. In the last 10 years, US domestic oil production has increased dramatically – to the point that the United States is no longer being held hostage by OPEC countries or turbulence in the Middle East. This could partly explain why gold prices have not prompted a positive reaction to the weekend's attack on Saudi oil facilities.

There was also violence in Hong Kong this weekend as civil unrest intensified. However, drone strikes in Saudi Arabia have eclipsed this news.

China's industrial output figures released on Monday were also weak, following a series of disappointing economic data from the world's second-largest economy. It is a mixed bag for the metal markets, as China is a major importer of metals and the slowdown in the country's economic growth is expected to reduce demand for metals. However, economic stimulus measures from the Chinese government could help boost demand for metals futures.

Technically, the December gold futures were in the middle of the midday range. Bulls have a strong overall short-term technical advantage and maintain a 3.5-month uptrend on the daily bar chart. The next objective of increasing short-term gold bullion prices is to produce a technical resistance close to September's strong $ 1566.20 peak resistance. Bears' next short-term price reduction target pushes prices down under strong technical support at $ 1,485.00. The first resistance is observed at today's highs, at $ 1,519.70, then at $ 1,525.00. The first support is at today's low of $ 1,503.40, then $ 1,500.00. Wyckoff Market Note: 7.0

The December futures prices for money were near the top of the session at noon. Bulls have the overall technical advantage in the short term. A bullish trend of three and a half months is still in place on the daily bar chart, but bulls need to show more power soon to keep it alive. Silver Bulls' next price reduction target is to close closing prices above a strong technical resistance at $ 19.00 an ounce. The next downside price target for the bears is a lower closing price at $ 17.00. The first resistance is $ 18,265, then the high of last week, $ 18,555. The next support is at today's low of $ 17.69, then at $ 17.47 last week. Wyckoff Market Estimate: 6.5.

In December, copper closed down 585 points to 264.10 cents today. Prices came close to the lows of the session, peaking at seven weeks and marking a bearish "outside day" on the daily bar chart today. Copper bears always have the overall technical advantage in the short term. However, recent gains suggest that this market has bottomed out. The Copper Bulls' next bullish price target is to push the closing prices above a strong technical resistance to 275.00 cents. The next downside for bearish futures is lower close to strong technical support at the low of September (248.20 cents). The first resistance is observed at 268.00 cents, then at today's maximum of 270.65 cents. The first support is at 262.00 cents, then at 259.00 cents last week. Wyckoff market estimate: 3.5.