Gold Sees Solid Rebound As U.S. Dollar Backs Off
(Kitco News) - Gold pricesare posting good gains in early U.S. trading Thursday. Traders stepped in tobuy the dip in gold prices on some perceived bargain hunting and by some shortcovering from the futures traders. Also, precious metals are seeing buyinginterest as the U.S. dollar index is posting sharp losses today, on acorrective pullback from recent gains that pushed the index to a 16-month highWednesday. December gold futures were last up $14.90 an ounce at $1,229.90. December Comex silver was last up $0.188 at $14.47 an ounce.
Globalstock markets were mostly higher overnight. U.S. stock indexes are pointedtoward higher openings when the New York day session begins, on an extension ofa strong rebound from Monday’s sell-off that drove the indexes to six-monthlows. Stock market traders and investors are glad to have the historicallyturbulent month of October out of the way and are now hoping for a seasonalSanta Claus rally. However, those thinking the world stock markets have seenthe “all clear” siren as the calendar turns to November are likely going to bedisappointed.
Focusin the U.S. is turning to next week’s mid-term elections, which many believewill be a referendum on the performance of President Trump.
Theother key outside market today sees December Nymex crude oil prices weaker, hittinga nine-week low overnight and trading just below $65.00 a barrel. Recenttechnical damage on the charts suggests more downside for crude oil in the nearterm.
Thekey U.S. economic data point of the week, if not the month, will be Friday’sNovember employment report from the Labor Department. The key non-farm payrollsnumber is forecast to come in at up 188,000. However, Wednesday’s ADP nationalemployment report reading of up 227,000 suggests Friday’s jobs report could bestronger than forecast.
U.S.economic data due for release Thursday includes the weekly jobless claims report,the Challenger job-cuts report, preliminary productivity and costs, the U.S.manufacturing purchasing managers index, construction spending and the ISMmanufacturing report on business.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bulls and bears are on a level overall near-term technical playing field.Bulls’ next upside price objective is to produce a close in December futuresabove solid resistance at the October high of $1,246.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,200.00. First resistance is seen at the $1,232.50 and then at thisweek’s high of $1,237.80. First support is seen at $1,220.00 and then at thisweek’s low of $1,213.40. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Decembersilver futures bears have the firm 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 $14.53 and then at this week’s highof $14.78. Next support is seen at this week’s low of $14.24 and then at $14.00.Wyckoff's Market Rating: 2.5.
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.