Gold Prices Lifted By Weaker U.S.Dollar, Short Covering

(Kitco News) - Gold prices aremoderately higher in early-afternoon U.S. trading Wednesday. Gold and silverare supported on some buying back of previously sold positions (short covering)by the shorter-term futures traders. A lower U.S. dollar index on this day alsosupported some buying interest in the precious metals markets. December gold futures were last up $6.10 an ounce at $1,209.00. December Comex silver waslast up $0.115 at $14.30 an ounce.

Therehave been no major news developments to move the markets this week, other thanthe U.S.-China trade dispute that has been ongoing for months. There continuesto be little to sometimes only modest risk aversion in the world marketplace atpresent, and that continues to limit the upside in the safe-haven gold andsilver markets.

Theother key outside market today finds Nymex crude oil prices higher and tradingjust below $71.00 a barrel. However, there is strong chart resistance justoverhead for crude that has capped rallies in recent months.

Technically,December gold futures bears still have the overall near-term technicaladvantage. However, prices have been trading sideways for three two weeks,which suggests a market bottom is in place. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat $1,220.70. Bears' next near-term downside price breakout objective ispushing prices below solid technical support at the August low of $1,167.10.First resistance is seen at today's high of $1,211.00 and then at last week'shigh of $1,218.00. First support is seen at $1,200.00 and then at this week'slow of $1,197.50. Wyckoff's Market Rating: 3.0

Decembersilver futures bears still have the solid overall near-term technicaladvantage. There are still no strong, early clues to suggest a market bottom isclose at hand. Silver bulls' next upside price breakout objective is closingprices above solid technical resistance at $15.07 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$13.50. First resistance is seen at last week's high of $14.39 and then at$14.50. Next support is seen at this week's low of $14.065 and then at lastweek's low of $13.965. Wyckoff's Market Rating: 2.0.

DecemberN.Y. copper closed down 10 points at 272.95 cents today. Prices closed nearmid-range today and hit a three-week high. The copper bears still have theoverall near-term technical advantage, but more price gains this week wouldbegin to suggest a market bottom is in place. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at theAugust high of 283.80 cents. The next downside price objective for the bears isclosing prices below solid technical support at the August low of 257.45 cents.First resistance is seen at today's high of 275.35 cents and then at 276.65cents. First support is seen at 270.00 cents and then at 265.00 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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