Routine, corrective price pullbacks for gold, silver

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(Kitco News) -Gold and silver prices are lower in early U.S. trading Friday, on normal downsidecorrections and some chart consolidation following recent good gains that thisweek pushed prices to multi-month highs. Bulls remain in technical control. Decembergold was last down $8.30 at $1,855.60 and December Comex silver was last down $0.231at $25.065 an ounce.

Globalstock markets were mixed in overnight trading. The U.S. stock indexes are pointedto firmer openings when the New York day session begins. The U.S. stock indexesthis week could have their first losing week in five weeks. Global stock marketshave become a bit wobbly, on rising concerns about problematic consumer andproducer price inflation. The U.S. Fed funds futures market is now signaling amore than 70% chance the Federal Reserve will raise interest rates by nextJune.

Themarketplace is keeping an eye on Russia, which may be weighing a potentialinvasion of Ukraine. A buildup of Russian forces near the border Ukrainianborder has the West concerned. U.S. Secretary of State Blinken said earlierthis week the U.S. commitment to Ukraine is “ironclad.” On Thursday Russianally Belarusian President Alexander Lukashenko threatened to shut gas supplies tothe EU, escalating a dispute over migration of refugees through the country.

Thekey outside markets today see the U.S. dollar index near steady but and hittinganother 15-month high overnight. Nymex crude oil prices are solidly lower and tradingaround $80.00 a barrel. The crude oil market bulls appear to have run out ofgas and a market top could be in place. Meantime, the 10-year U.S. Treasurynote yield is presently fetching 1.572%.

U.S.economic data due for release Friday is light and includes the University ofMichigan consumer sentiment survey.

Technically,December gold futures bulls have the firm overall near-term technical advantageand have momentum. A five-week-old uptrend is in place on the daily bar chart. Bulls’next upside price objective is to produce a close above solid resistance at $1,900.00.Bears' next near-term downside price objective is pushing futures prices belowsolid technical support at $1,800.00. First resistance is seen at the overnighthigh of $1,864.90 and then at this week’s high of $1,870.60. First support is seenat Thursday’s low of $1,845.10 and then at $1.830.00. Wyckoff's Market Rating: 7.0.

The silver bulls have the overall near-term technicaladvantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls'next upside price objective is closing December futures prices above solid technicalresistance at $26.13 an ounce. The next downside price objective for the bears isclosing prices below solid support at $23.00. First resistance is seen at theovernight high of $25.39 and then at $25.75. Next support is seen at Thursday’slow of $24.645 and then at $24.50. Wyckoff's Market Rating: 6.0.

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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