Gold Prices Back Down From 2-Week Highs

(Kitco News)- Goldprices are slightly lower in early-afternoon U.S. trading Tuesday, afterhitting a two-week high overnight. Some normal profit-taking from theshorter-term futures traders was featured today, following decent gains thepast few sessions that do suggest the yellow metal has put in a near-termmarket bottom. December gold futures were last down $1.40 an ounce at$1,214.60. December Comex silver was last down $0.062 at $14.91 an ounce.

Aweaker U.S. dollar index on this day was a bullish element for the preciousmetals markets that did limit the downside pressure. However, with little riskaversion among traders and investors at present, the upside for the safe-havenmetals will likely be limited. U.S. stock indexes hit new record highs againtoday.

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.

Theother key outside market today finds Nymex crude oil prices weaker on acorrective pullback from recent good gains, and trading around $68.50 a barrel.

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 attoday's high of $1,220.70 and then at $1,225.00. First support is seen at thisweek'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 today's high of $15.07 and then at $15.25. Next supportis seen at this week's low of $14.82 and then at $14.555. Wyckoff's MarketRating: 2.5.

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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