Gold Sees Slight Gains From Sliding USDX

(Kitco News) - Gold prices aremodestly higher in early-afternoon U.S. trading Thursday. A sharply lower U.S. dollar index that dropped to a 2.5-month low today only gave mild support tothe precious metals markets. Risk-on trader and investor attitudes in the worldmarketplace, as evidenced by record highs scored in the major U.S. stockindexes today, continue to squelch buyers of the safe-haven metals. December gold futures were last up $3.20 an ounce at $1,211.50. December Comex silver was last up $0.04 at $14.32 an ounce.

Decemberpalladium futures on Thursday scored an eight-month high of $1,047.50 as ofmidday. The palladium bulls have the solid near-term technical advantage tosuggest still more gains in the near term, including a likely challenge soon ofthe all-time high of $1,111.15 scored in January of this year. Fundamentally,reports say the sharp gains in palladium recently are mainly due to stockpilingof the precious metal by China due to a trade war with the U.S. and itsassociated uncertainties going forward, and because China is likely to ramp upits vehicle production in the coming years.

Worldstock markets were mixed to firmer overnight. It's been a quieter week on thefundamental news front, with the ongoing U.S.-China trade war the main focus.However, traders and investors are fatigued with that news and the markets arereacting less and less to the latest salvos.

Theother key outside market today finds Nymex crude oil prices slightly down andtrading just below $71.00 a barrel. Around present price levels crude oilrallies have been capped several times this year.

Technically,the gold bears still have the overall near-term technical advantage. However,prices are in a fledgling uptrend on the daily bar chart, which suggests amarket bottom is in place. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at $1,220.70in December futures. 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 last week's high of $1,218.00 and then at$1,220.70. First support is seen at today's low of $1,205.10 and then at$1,200.00. Wyckoff's Market Rating: 3.0

Thesilver bears still have the solid overall near-term technical advantage. Thereare still no strong, early clues to suggest a market bottom is close at hand.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.07 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.

DecemberN.Y. copper closed up 130 points at 274.25 cents today. Prices closed near thesession high today and closed at a three-week high close. The copper bearsstill have the overall near-term technical advantage, but more price gainsFriday would begin to suggest a market bottom is in place. Copper bulls' nextupside price objective is pushing and closing prices above solid technicalresistance at the August high of 283.80 cents. The next downside priceobjective for the bears is closing prices below solid technical support at theAugust low of 257.45 cents. First resistance is seen at this week's high of275.35 cents and then at 276.65 cents. First support is seen at 270.00 centsand 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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