Gold Prices Near Steady in Choppy, 2-Sided Trade

(Kitco News) - Gold pricesareslightly lower in early-afternoon U.S. trading Thursday and have visited bothsides of unchanged in a choppy session. Global stock markets were lower today,suggesting a bit of risk aversion present in the marketplace. That’s bullishfor the safe-haven metals. However, the recent strength of the U.S. dollarindex continues to limit the upside in the metals. December gold futures werelast down $1.20 an ounce at $1,201.60. December Comex silver was last down $0.08at $14.59 an ounce.

Worldstock markets are being pressured late this week by rising world governmentbond yields and continued strong-greenback pressure on the secondary currencymarkets. U.S. Treasury yields saw the benchmark 10-year note yield rise to aseven-year high above 3.20% today. Strong U.S. economic data recently isdriving U.S. bond and note prices lower. Other world government bond marketsare also seeing their yields rise, in sympathy to the U.S. This is yet anotherclue that creeping price inflation could become problematic down the road.That’s a bullish scenario for hard assets like raw commodities, including theprecious metals, and bearish for paper assets like stocks and bonds.

Tradersare looking ahead to the U.S. Labor Department’s Employment Situation Reportfor September on Friday morning-arguably the most important U.S. data point ofthe month. The key non-farm payrolls number is expected to come in up 180,000.Wednesday’s U.S. ADP national employment report for September showed a gain of230,000 jobs, which hints that Friday’s employment report will come in strongerthan expected.

Thekey outside markets today find the U.S. dollar index firmer and hitting asix-week high, amid rising U.S. government bond yields that are attracting moreforeign investors. Meantime, November Nymex crude oil prices are lower on someprofit taking after hitting a four-year high earlier this week. Prices aretrading just below $75.00 a barrel.

Technically,December gold futures prices closed nearer the session low today. Prices areback in the recent trading range, which suggests a market bottom is in place.The gold bears still have the overall near-term technical advantage. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical resistance at $1,220.70. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at theAugust low of $1,167.10. First resistance is seen at this week’s high of$1,212.30 and then at $1,220.70. First support is seen at $1,200.00 and then atthis week’s low of $1,188.10. Wyckoff's Market Rating: 3.0

Decembersilver futures prices closed nearer the session low. Prices are in a fledglingthree-week-old uptrend on the daily bar chart. The silver bears still have theoverall near-term technical advantage but recent price action suggests a marketbottom being in place. Silver bulls' next upside price breakout objective isclosing prices above solid technical resistance at $15.07 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at the September low of $13.965. First resistance is seen at today’shigh of $14.805 and then at this week’s high of $14.95. Next support is seen at$14.50 and then at this week’s low of $14.395. Wyckoff's Market Rating: 3.5.

DecemberN.Y. copper closed down 480 points at 278.60 cents today. Prices closed nearerthe session low and scored a bearish “outside day” down on the daily bar charttoday. The copper bears have the overall near-term technical advantage. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at the 290.00 cents. The next downside price objective forthe bears is closing prices below solid technical support at the August low of257.45 cents. First resistance is seen at 280.00 cents and then at 285.00cents. First support is seen at this week’s low of 275.55 cents and then at272.00 cents. Wyckoff's Market Rating: 3.5.

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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