Gold Prices See Some Chart Consolidation

(Kitco News) - Gold prices are slightly lower in quieter early U.S. trading Monday. Some backingand filling on the daily chart is seen following recent good gains. Decembergold futures were last down $0.90 an ounce at $1,222.10. December Comex silverwas last up $0.003 at $14.385 an ounce.

Globalstock markets were mixed in subdued, pre-holiday trading overnight. U.S. stockindexes are slightly lower in early U.S. trading.

Itcould be a quieter trading week as the U.S. Thanksgiving holiday falls onThursday. U.S. markets close early Wednesday, with Friday the “Black Friday”sale affair that finds many traders and investors out for the day, shopping forChristmas gift deals.

Thereare no major news developments early this week to stoke the markets. Reportsthe CIA has named the Saudi Crown Prince as the one who ordered the killing ofthe Saudi journalist last month are not moving the markets. Most believe theU.S. has too much at stake with the Saudis as their Middle East ally and U.S.arms purchaser to make a big deal over the matter.

Thekey outside markets today find the U.S. dollar index trading slightly lower butstill not far below this month’s 1.5-year high. Meantime, Nymex crude oilfutures prices are slightly higher on a corrective bounce after hitting an11-month low of $54.75 last week.

U.S.economic data due for release Monday is light and includes quarterly retaile-commerce sales and the NAHB housing market index.

Technically,gold bears have the overall near-term technical advantage. Bulls’ next upsideprice objective is to produce a close in December futures above solidresistance at the November high of $1,239.30. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at theSeptember low of $1,184.30. First resistance is seen at last week’s high of $1,226.00and then at $1,230.00. First support is seen at Friday’s low of $1,213.70 andthen at $1,207.10. Wyckoff's Market Rating: 3.5

Decembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $14.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $13.50. Firstresistance is seen at $14.50 and then at $14.775. Next support is seen at Friday’slow of $14.215 and then at $14.00. Wyckoff's Market Rating: 2.0.

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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