Gold Down On Profit-Taking, Strong U.S. Dollar

(Kitco News) - Gold prices aremoderately lower in early-afternoon U.S. trading Monday. Some profit takingfrom the shorter-term futures traders is featured. The stronger U.S. dollar index today that is hovering near last week’s nine-week high also workedagainst the precious metals market bulls today. There is also less riskaversion in the marketplace early this week as world stock markets have settleddown, for now. December gold futures were last down $7.80 an ounce at$1,228.10. December Comex silver was last down $0.25 at $14.45 an ounce.

U.S.stock indexes on Friday fell to six-month lows before posting rebounds on theday. U.S. and world stock markets were quieter today and traded mixed. Stockmarket bulls will be glad to get the historically turbulent month of Octoberout of the way and hopefully get a “Santa Claus rally” this year. However, morestock market volatility on the downside in the near term would benefitsafe-haven gold and silver.

Theother key outside market today saw November Nymex crude oil prices weaker andtrading around $67.25 a barrel.

Thekey U.S. economic data point of the week, if not the month, will be Friday’sNovember employment report from the Labor Department.

Technically,the bulls still have the slight overall near-term technical advantage but needto show fresh power soon to keep it. Gold bulls' next upside near-term pricebreakout objective is to produce a close above solid technical resistance at$1,250.00. Bears' next near-term downside price breakout objective is pushingprices below solid technical support at $1,200.00. First resistance is seen attoday’s high of $1,237.60 and then at last week’s high of $1,246.00. Firstsupport is seen at $1,225.00 and then at $1,220.00. Wyckoff's Market Rating:5.5

Silverprices closed nearer the session low and hit a two-week low today. The silverbears have the firm overall near-term technical advantage and gained freshpower today. Silver bulls' next upside price breakout objective is closingprices above solid technical resistance at $15.00 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support atthe September low of $13.965 in December futures. First resistance is seen attoday’s high of $14.78 and then at $14.88. Next support is seen at today’s lowof $14.405 and then at the October low of $14.255. Wyckoff's Market Rating:3.0.

DecemberN.Y. copper closed down 65 points at 273.45 cents today. Prices closed nearerthe session low today. The copper bears have the overall near-term technicaladvantage. Prices are in a choppy, six-week-old downtrend on the daily barchart. Copper bulls' next upside price objective is pushing and closing pricesabove solid technical resistance at the September high of 287.10 cents. Thenext downside price objective for the bears is closing prices below solidtechnical support at the August low of 257.45 cents. First resistance is seenat today’s high of 278.00 cents and then at 280.00 cents. First support is seenat 270.00 cents and then at of 267.50 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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