Despite the potential rekindling of US/Chinese tensions due to the US signing into law its Hong Kong autonomy bill, the gold market has generally remained in a tight coiling pattern. However, gold has diverged with silver in the early going and could see additional geopolitical support from North Korean missile launches.

While not attributable to a specific recent report, media outlets are beginning to take note of the expanding concern toward China as economic and financial readings suggest the country is facing broad-based deceleration which many think is beginning to weaken the resolve of Chinese negotiators.

Unfortunately for the bull camp gold and silver ETF holdings posted declines in holdings and the gold market is getting plenty of coverage projecting the worst monthly performance in three years with today's close.

Looking back the metals are also slightly off-balance from US Fed commentary which clearly put US Fed policy on hold.

Another minor negative for gold came from the Kazakhstan central bank as they confirmed their October holdings for the month of October declined relative to the end of September.

With the signing of the Hong Kong autonomy bill, plans for a resumption of weekend protests in Hong Kong we suspect China will be forced to take a very hardline stance in US trade negotiations. Therefore political news should thicken support underneath February gold at $1459.10 and then again down at $1456.60.

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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.