Gold Gains Late As U.S. Dollar Index Weakens

(Kitco News) - Gold priceswere modestly up in early afternoon U.S. trading Wednesday. Some minor profit-takingearly saw gold traders then step in to buy the dip when the U.S. dollar indexcould not hold its early gains and dropped to a 3.5-year low. February Comex gold was last up $3.70 an ounce at $1,340.80. March Comex silver was last up$0.016 at $17.20 an ounce.

Goldand silver market bulls are sitting comfortable at present, amid their positivenear-term technical postures, the depreciating U.S. dollar, and some worriesabout the U.S. government shutting down late this week due to budgetdisagreements among Republicans and Democrats.

Amassive sell-off in the crypto currency market-namely bitcoin-did not hurt thegold and silver market bulls any today, either.

Theother key outside markets on Wednesday saw Nymex crude oil prices firmer.Prices are near the three-year high of $64.89 a barrel, set on Tuesday. The oilbulls are technically strong to suggest still more gains in the near term. Suchis also bullish for the precious metals markets.

Technically,Februarygold futures prices closed nearer the session high today. The goldbulls have the firm overall near-term technical advantage, amid a five-week-olduptrend in place on the daily bar chart. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat the September high of $1,365.80. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,300.00. First resistance is seen at this week's high of $1,345.00 and thenat $1,350.00. First support is seen at today's low of $1,331.00 and then at the$1,325.00. Wyckoff's Market Rating: 6.5

Marchsilver futures prices closed near mid-range today. The bulls have the overallnear-term technical advantage. Prices are in a five-week-old uptrend on thedaily bar chart. Silver bulls' next upside price breakout objective is closingprices above solid technical resistance at the October high of $17.59 an ounce.The next downside price breakout objective for the bears is closing pricesbelow solid support at the October low of $16.435. First resistance is seen at$17.32 and then at this week's high of $17.45. Next support is seen at $17.00and then at this week's low of $16.80. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed down 280 points at 319.15 cents today. Prices closed nearerthe session low and hit another three-week low today. The copper bulls stillhave the overall near-term technical advantage, but are fading a bit. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at the December high if 332.20 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat 310.00 cents. First resistance is seen at today's high of 322.10 cents andthen at 325.00 cents. First support is seen at today's low of 317.85 cents andthen at 315.00 cents. Wyckoff's Market Rating: 6.5.

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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