Gold, Silver Prices Powered Up By Pummeled Greenback
(Kitco News) - Gold andsilver prices are posting strong gains in early-afternoon U.S. tradingThursday. Traders in both metals have stepped in to buy the dips on someperceived bargain hunting, and by heavy short covering from the futurestraders. Also, precious metals are seeing good buying interest as the U.S. dollar index is posting sharp losses today, on a corrective pullback fromrecent gains that pushed the index to a 16-month high Wednesday. December gold futures were last up $20.80 an ounce at $1,235.60. December Comex silver waslast up $0.458 at $14.74 an ounce.
Theprecious metals gained today despite upbeat trader and investor risk attitudes.Global stock markets were mostly higher today. U.S. stock indexes are higher inearly- afternoon dealings, on an extension of a strong rebound from Monday’ssell-off that drove the indexes to six-month lows. However, those thinking theworld stock markets have seen the “all clear” siren as the calendar turns toNovember are likely going to be disappointed.
Focusin the U.S. is turning to next week’s mid-term elections, which many believewill be a referendum on the performance of President Trump.
Theother key outside market today sees December Nymex crude oil prices sharplyweaker, hitting a 4.5-month low overnight and trading just above $63.00 abarrel. Recent technical damage on the charts suggests more downside for crudeoil in the near term.
Thekey U.S. economic data point of the week, if not the month, will be Friday’sNovember employment report from the Labor Department. The key non-farm payrollsnumber is forecast to come in at up 188,000. However, Wednesday’s ADP nationalemployment report reading of up 227,000 suggests Friday’s jobs report could bestronger than forecast.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,the gold bulls today regained their slight overall near-term technicaladvantage. Gold bulls' next upside near-term price breakout objective is toproduce a close in December futures above solid technical resistance at theOctober high of $1,246.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at this week’s low of$1,213.40. First resistance is seen at $1,240.00 and then at $1,246.00. Firstsupport is seen at $1,225.00 and then at $1,220.00. Wyckoff's Market Rating:5.5
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Thesilver bears still have the overall near-term technical advantage, but today’sprice action suggests a market low was put in place in September. Silver bulls'next upside price breakout objective is closing December futures prices abovesolid technical resistance at $15.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Septemberlow of $13.965. First resistance is seen at this week’s high of $14.78 and thenat $14.88. Next support is seen at $14.50 and then at this week’s low of$14.24. Wyckoff's Market Rating: 3.0.
DecemberN.Y. copper closed up 540 points at 271.30 cents today. Prices closed near thesession high and scored a bullish “outside day” up on the daily bar chart afterhitting a six-week low early on today. The copper bears still have the firmoverall near-term technical advantage. Prices are in a choppy, six-week-olddowntrend on the daily bar chart. Copper bulls' next upside price objective ispushing and closing prices above solid technical resistance at the Septemberhigh of 287.10 cents. The next downside price objective for the bears isclosing prices below solid technical support at the August low of 257.45 cents.First resistance is seen at 273.30 cents and then at 275.00 cents. Firstsupport is seen at 270.00 cents and then at 267.00 cents. Wyckoff's MarketRating: 3.0.
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.