Gold Prices Firmer As U.S. Dollar Index Sinks

(Kitco News) - Gold prices aremodestly higher in early U.S. trading Thursday. A sharply lower U.S. dollarindex that dropped to a 2.5-month low this morning is only giving mild supportto the precious metals markets. Risk-on trader and investor attitudes in theworld marketplace continue to squelch buyers of the safe-haven metals. Decembergold futures were last up $2.20 an ounce at $1,210.50. December Comex silverwas last up $0.05 at $14.33 an ounce.

Worldstock markets were mixed to firmer overnight. U.S. stock indexes are pointedtoward higher openings when the New York day session begins. It's been aquieter week on the fundamental news front, with the ongoing U.S.-China tradewar the main focus. However, traders and investors are fatigued with that newsand the markets are reacting less and less to the latest salvos.

Inovernight news, Turkey's finance minister said his country will experiencelower economic growth and higher inflation in the coming two years, with annualinflation reaching a whopping 20%. The Turkish lira is down 40% against theU.S. dollar this year.

Japan'sprime minister Abe on Thursday was re-elected as his party's leader by alandslide.

Theother key outside market today finds Nymex crude oil prices near steady andtrading around $71.00 a barrel. Around present price levels rallies have beencapped several times this year.

U.S.economic data due for release Thursday includes the weekly jobless claimsreport, the Philadelphia Fed business survey, leading economic indicators, andexisting home sales.

Technically,gold bears have the overall near-term technical advantage. However, recentsideways price action favors the bulls and suggests a market bottom is inplace. Gold bulls' next upside near-term price breakout objective is to producea close in December futures above solid resistance at $1,220.70. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at the August low of $1,167.10. First resistance is seen at lastweek's high of $1,218.00 and then at $1,220.70. First support is seen at theovernight low of $1,205.10 and then at $1,200.00. Wyckoff's Market Rating: 3.0

Decembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $13.50. Firstresistance is seen at last week's high of $14.39 and then at $14.50. Nextsupport is seen at this week's low of $14.065 and then at last week's low of $13.965.Wyckoff's Market Rating: 2.0.

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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