Gold fell to its lowest in more than a week on Tuesday as easing concerns over North Korea’s nuclear ambitions and the impact of Hurricane Irma tempered demand for the metal as a haven from risk while the dollar strengthened. World stocks hit record highs for a second straight day on Tuesday as investors opted for nominally higher risk-assets over havens such as gold, bonds and the Japanese yen. News the United Nations Security Council late Monday imposed new sanctions on North Korea that were not as harsh as the U.S. wanted is being perceived as somewhat de-escalating the tensions between the U.S. and North Korea. It’s important to keep in mind, however, that traders are fickle. Today’s risk appetite (stock market rally) could quickly turn into tomorrow’s keen anxiety. Don’t expect the U.S.-North Korea dispute of North Korea’s nuclear missiles to just fizzle out. It appears North Korea’s president enjoys his ability to irritate the U.S. How long President Trump puts up with Kim Jong-Un’s intensifying provocations is an unknown.
The speculative long position in gold as of September 5th stands at 280,562 contracts. This was an increase of 17590 contracts on the week. The all time record long stands at 372 K contracts made July of last year. For silver, non-commercial and non-reportables came in long at 76,483 contracts. This was an increase of 10K contracts for the week. Technical’s for the remainder of the week come in as follows for both gold and silver. For December gold, support is down first at 1316.9 and with a close below 1302.3. Resistance sits up at 1365.3 and above there at 1379.5. For December silver, support sits down at 1787.4 and then down at 1762.7. Resistance is up at first at 1832.4 and then up at 1853.7.
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