Gold Hits 2-Week High Amid Weaker U.S. Dollar

(Kitco News)- Goldprices are firmer and scored a two-week high in early U.S. trading Tuesday. Aweaker U.S. dollar index on this day is a bullish element for the preciousmetals markets. However, with little risk aversion among traders and investorsat present, the upside for the safe-haven metals will likely be limited. Decembergold futures were last up $2.90 an ounce at $1,218.70. December Comex silver was last up $0.028 at $14.995 an ounce.

Worldstock markets were again mostly higher overnight. U.S. stock indexes arepointed toward higher openings and at new record highs when the New York daysession begins.

Theworld marketplace is still buzzing about the U.S. and Mexico coming to terms ona trade agreement. World stock markets rallied on the news. Some now reckon theU.S. will get to work on agreements with its other major trading partners,including the EU and China. However, President Trump has indicated he's in norush to make a deal with China.

Thekey outside markets today find the U.S. dollar index weaker. The greenbackbulls are fading a bit now. Meantime, Nymex crude oil prices are slightly upand trading around $69.00 a barrel.

U.S.economic data due for release Tuesday includes the weekly Goldman Sachs andJohnson Redbook retail sales reports, the advance economic indicators report,the S&P/Case-Shiller home price index, the consumer confidence index andthe Richmond Fed business survey.

Technically,gold bears still have the overall near-term technical advantage but a pricedowntrend on the daily bar chart has been negated to suggest a market bottom isin place. Gold bulls' next upside near-term price breakout objective is toproduce a close in December futures above solid resistance at $1,226.00. Bears'next near-term downside price breakout objective is pushing prices below solidtechnical support at the August low of $1,167.10. First resistance is seen atthe overnight high of $1,220.70 and then at $1,225.00. First support is seen atMonday's low of $1,209.30 and then at $1,200.00. Wyckoff's Market Rating: 3.0

December silver futures bears have the overallnear-term technical advantage, but prices hit a two-week high overnight. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $15.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $14.00. Firstresistance is seen at the overnight high of $15.07 and then at $15.25. Nextsupport is seen at Monday's low of $14.82

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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