Gold, silver pull back on normal profit taking

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(Kitco News) -Gold and silver prices are moderately lower in midday U.S. trading Thursday, on routinedownside corrections and light profit taking from the shorter-term futurestraders. December gold was last down $7.70 at $1,862.50 and December Comexsilver was last down $0.212 at $24.955 an ounce.

Globalstock markets were mostly down in overnight trading. The U.S. stock indexes aremixed at midday. The stock market bulls are keeping the major indexes buoyantamid upbeat corporate earnings reports. However, inflation worries continue onthe rise. Rallies in many raw commodity futures markets on Wednesdayunderscored notions that commercial end-users are already “stocking up” aheadof time, in order to beat perceived likely future price increases. That onlymakes supplies shorter and more inclined to price increases.

Thekey outside markets today see the U.S. dollar index lower on a downsidecorrection after hitting a 15-month high on Wednesday. Nymex crude oil pricesare firmer and trading around $78.75 a barrel. Oil prices overnight hit asix-week low as it appears the crude market has put in a near-term top. Thereis talk the U.S. and China may tap their strategic oil reserves to help easehigher gasoline prices. The 10-year U.S. Treasury note yield is presentlyfetching around 1.55%.

Technically, December gold futures bulls have thefirm overall near-term technical advantage. Prices are in a six-week-olduptrend on the daily bar chart. Bulls’ next upside price objective is toproduce a close above solid resistance at $1,900.00. Bears' next near-termdownside price objective is pushing futures prices below solid technical supportat $1,800.00. First resistance is seen at today’s high of $1,873.30 and then atthis week’s high of $1,879.50. First support is seen at this week’s low of$1,851.00 and then at $1,839.00. Wyckoff's Market Rating: 7.0.

December silver futures bullshave the overall near-term technical advantage amid a six-week-old uptrend inplace on the daily bar chart. Silver bulls' next upside price objective isclosing prices above solid technical resistance at $26.13 an ounce. The nextdownside price objective for the bears is closing prices below solid support atthe November low of $23.045. First resistance is seen at this week’s high of$25.49 and then at $25.75. Next support is seen at today’s low of $24.73 andthen at $24.50. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 430 points at 430.85cents today. Prices closed nearer the session high today. The copper bears havethe overall near-term technical advantage. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at450.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at 415.00 cents. First resistance is seen atWednesday’s high of 436.05 cents and then at 440.00 cents. First support is seenat 425.00 cents and then at this week’s low of 419.15 cents. Wyckoff's MarketRating: 4.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@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.

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