Gold Slightly Up in 2-Sided Action; Bargain Hunters Step In
(Kitco News) - Some bargain buyers surfaced to buy the dip in gold prices in late Trading Thursday, to lift the metal just above steady on the day. Trading was choppy and on both sides of unchanged in the New York session. Gold and silver prices dropped to six-week lows in earlier trading Thursday. A weaker U.S. dollar index today also encouraged buying interest in the precious metals markets. December Comex gold was last up $1.60 an ounce at $1,289.40. December Comex silver prices were last up $0.038 at $16.865 an ounce.
Better risk appetite in the marketplace this week, as well as a rallying U.S. dollar index the past two weeks, have been bearish elements for the gold and silver markets that have kept buyers scarce.
The U.S. dollar index was slightly lower Thursday but hit another five-week high overnight. A bullish head-and-shoulders bottom reversal pattern has formed on the daily bar chart for the USDX, which is a technical clue that a market bottom is in place. Meantime, the Euro currency hit another five-week low against the U.S. dollar overnight before rebounding at bit in New York trading Thursday. There are chart clues the Euro has put in a near-term market top.
The other key outside market on Thursday saw Nymex crude oil futures lower on profit taking after hitting a five-month high overnight. The oil bulls still have the near-term technical advantage. However, there are stiff chart resistance levels just overhead in the crude oil market.
Technically, December gold futures prices closed nearer the session high after hitting a six-week low early on today. Bears have the slight near-term technical advantage. A steep three-week-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,320.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,270.00. First resistance is seen at $1,300.00 and then at $1,307.00. First support is seen at today’s low of $1,280.40 and then at $1,275.00. Wyckoff's Market Rating: 4.5
December silver futures prices closed nearer the session high and hit a six-week low early on today. The silver bears have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at this week’s high of $17.295. Next support is seen at today’s low of $16.705 and then at $16.645. Wyckoff's Market Rating: 4.5.
December N.Y. copper closed up 475 points at 297.70 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 317.85 cents. The next downside price objective for the bears is closing prices below solid technical support at 280.00 cents. First resistance is seen at today’s high of 299.00 cents and then at 300.00 cents. First support is seen at 295.00 cents and then at today’s low of 290.50 cents. Wyckoff's Market Rating: 6.0.