Bearish "Outside Markets" Squelch Gold, Silver Bulls

(Kitco News) - Gold andsilver prices are modestly lower in early-afternoon U.S. trading Tuesday,pressured by bearish outside markets that include another sharp drop in crudeoil prices and a rally in the U.S. dollar index. However, there’s anotheroutside market force that’s limiting the downside in the safe-haven metals: amajor sell-off in the U.S. stock market recently that has now erased the gainsseen in 2018. December gold futures were last down $2.60 an ounce at $1,222.80.December Comex silver was last down $0.098 at $14.305 an ounce.

Globalstock markets were also mostly lower overnight, following the solid losses postedin the U.S. stock indexes on Monday. Technology stocks are taking the brunt ofthe selling pressure recently. It still appears the U.S. stock indexes put inat least near-term tops last month, if not major market tops. That’s a bullishunderlying factor for the competing asset class, precious metals.

Lookfor quieter trading in the U.S. Wednesday as the 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.

Technically,the gold bears still have the overall near-term technical advantage. However,recent price action begins to suggest a near-term market bottom is in place.Gold bulls' next upside near-term price breakout objective is to produce aclose above solid technical resistance at the October high of $1,246.00. Bears'next near-term downside price breakout objective is pushing prices below solidtechnical support at the November low of $1,196.60. First resistance is seen attoday’s high of $1,229.50 and then at the November high of $1,239.30. Firstsupport is seen at this week’s low of $1,218.50 and then at last Friday’s lowof $1,213.70. Wyckoff's Market Rating: 3.5

Thesilver bears have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at the October high of $14.95 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$13.50. First resistance is seen at $14.50 and then at $14.775. Next support isseen at today’s low of $14.205 and then at $14.00. Wyckoff's Market Rating:2.0.

DecemberN.Y. copper closed down 245 points at 277.45 cents today. Prices closed nearerthe session low after hitting a six-week high early on today. Prices alsoscored a bearish “outside day” down on the daily bar chart. The copper bearshave the overall near-term technical advantage. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at theSeptember high of 287.10 cents. The next downside price objective for the bearsis closing prices below solid technical support at the August low of 257.45cents. First resistance is seen at 280.00 cents and then at today’s high of at284.60 cents. First support is seen at today’s low of 275.30 cents and then at273.30 cents. Wyckoff's Market Rating: 3.0.

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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