Gold Prices Weaker On Normal Corrective Pullback
(Kitco News) - Gold prices aremodestly down in early U.S. trading Monday, on a normal corrective pullbackthat saw prices hit a more-than-three-month high on Friday. A firmer U.S.dollar index to start the trading week is also working against the preciousmetals market bulls. December gold futures were last down $3.50 an ounce at $1,232.30.December Comex silver was last up $0.015 at $14.72 an ounce.
Globalstock markets were mixed to mostly firmer overnight. U.S. stock indexes arepointed toward higher openings when the New York day session begins. Europeanstock indexes were mostly up, following news that the S&P Global Ratings agencyon Friday did not downgrade Italy’s debt rating. China’s stock market sufferedmore losses Monday amid investor worries about the world’s second-largesteconomy.
U.S.stock indexes on Friday fell to six-month lows before posting rebounds on theday. Stock market bulls will be glad to get the historically turbulent month ofOctober out of the say and hopefully get a “Santa Claus rally” this year. Morestock market volatility on the downside in the near term would benefitsafe-haven gold.
Inovernight news, German Chancellor Angela Merkel has announced she will stepdown as leader of her Christian Democratic party. Europe market watchers saythat’s a sign of Merkel’s decline in power in Germany and in the EuropeanUnion.
Thekey outside markets today find the U.S. dollar index higher and hovering near Friday’snine-week high. Meantime, November Nymex crude oil prices are weaker andtrading around $67.50 a barrel.
Thekey U.S. economic data point of the week, if not the month, will be Friday’sNovember employment report from the Labor Department.
U.S.economic data due for release Monday includes personal income and outlays andthe Texas manufacturing outlook survey.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bulls have the near-term technical advantage. Bulls’ next upside priceobjective is to produce a close in December futures above solid resistance at $1,275.00.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,220.00. First resistance is seen at the overnighthigh of $1,237.60 and then at last week’s high of $1,246.00. First support is seenat $1,225.00 and then at $1,220.00. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Decembersilver futures bears still have the 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 the Septemberlow of $13.965. First resistance is seen at last week’s high of $14.84 and thenat the October high of $14.95. Next support is seen at last week’s low of$14.54 and then at the October low of $14.255. Wyckoff's Market Rating: 4.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@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.