Gold boosted by weaker USDX, falling U.S. bond yields

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(Kitco News) - Gold pricesare holding decent gains in midday U.S. dealings Monday. Support comes from a weakerU.S. dollar index, firmer crude oil prices and falling U.S. government bondyields on this first trading day of the week and of the month. Decembergold was last up $10.20 at $1,794.10 and December Comexsilver was last up $0.116 at$24.065 an ounce.

Globalstock markets were mixed but mostly firmer in overnight trading. The U.S. stockindexes are slightly up at midday after hitting record highs early on today. Asthe calendar turns to November and the historically turbulent months ofSeptember and October are now behind, the stock market bulls are feeling evenmore confident. The seasonal "Santa Claus rally" may carry equities stillhigher into the end of the year.

The10-year U.S. Treasury note yield is presently fetching 1.58%.

Amajor data point this week is the Federal Reserve's Open Market Committeemeeting that begins Tuesday morning and ends Wednesday afternoon with astatement. It's believed the FOMC will give clarity on the timing of thetapering of its monthly bond-buying program, with most reckoning it will startto happen sooner rather than later. It seems Fed officials are finally realizingwhat much of the marketplace has known for some time: Inflation continues to riseand has become problematic in some sectors, and there are no clues to suggestinflation will abate anytime soon.

Technically,December gold futures bulls have the overall near-term technical advantage amida four-week-old price uptrend in place on the daily bar chart. Bulls' nextupside price objective is to produce a close above solid resistance at theSeptember high of $1,836.90. Bears' next near-term downside price objective ispushing futures prices below solid technical support at $1,750.00. Firstresistance is seen at $1,800.00 and then at the October high of $1,815.50.First support is seen at today's low of $1,780.20 and then at last week's low of$1,772.40. Wyckoff's Market Rating: 6.5

December silver futures bulls have the overallnear-term technical advantage. Prices are in a four-week-old uptrend on thedaily chart. Silver bulls' next upside price objective is closing prices abovesolid technical resistance at $25.00 an ounce. The next downside priceobjective for the bears is closing prices below solid support at $23.00. Firstresistance is seen at $24.33 and then at $24.50. Next support is seen at lastweek's low of $23.705 and then at $23.50. Wyckoff's Market Rating: 6.0.

DecemberN.Y. copper closed up 5 points at 436.85 cents today. Prices closed nearmid-range today and hit a three-week low. The copper bulls and bears are on alevel overall near-term technical playing field. Copper bulls' next upsideprice objective is pushing and closing prices above solid technical resistanceat 460.00 cents. The next downside price objective for the bears is closingprices below solid technical support at 420.00 cents. First resistance is seenat 445.00 cents and then at 450.00 cents. First support is seen at today's lowof 432.85 cents and then at 430.00 cents. Wyckoff's Market Rating: 5.0.

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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