Gold, Silver Prices Down On Upbeat Risk Appetite

(Kitco News) - Gold andsilver prices areweaker in early-afternoon U.S. trading today. Keener risk appetite is in themarketplace to start the trading week has the precious metals under pressure,as does a firmer U.S. dollar index today. It’s very likely going to take ageopolitical shock to the marketplace to jumpstart a decent rally in thesafe-haven gold market. December gold futures were last down $2.70 an ounce at$1,193.50. December Comex silver was last down $0.202 at $14.51 an ounce.

Worldstock markets were mixed to firmer today, while U.S. stock indexes are solidlyhigher on news of a U.S.-Canada trade deal reached on Sunday. Chinese marketsare closed until Friday for a public holiday.

Focusin Europe is on the new anti-establishment Italian government’s economic planto address its fiscal and financial problems. The Euro currency has beenpressured and the U.S. dollar boosted by this matter, which could be the nextflash point in the currency and financial markets, which could also lift thesafe-haven gold and silver markets. As the calendar has turned to October,traders and investors are half-way through what history shows can be theturbulent months of September and October-with no speedbumps yet encountered.

Thekey outside markets today find the U.S. dollar index higher and hitting athree-week high. The greenback bulls have regained upside technical momentum thepast three sessions. Meantime, November Nymex crude oil prices are solidlyhigher, have hit a new contract and eight-month high nearing $75.00 a barrel.Brent crude oil futures are at a four-year high. Rising oil prices should bebenefitting the metals markets more than is currently the case, if recenthistory is a gauge.

Technically,gold prices last week saw a bearish downside “breakout” from the recent tradingrange, which suggests a retest of the August low. The gold bears have the firmoverall near-term technical advantage. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidtechnical resistance at $1,220.70. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at theAugust low of $1,167.10. First resistance is seen at today’s high of $1,196.50and then at $1,200.00. First support is seen at last week’s low of $1,184.30and then at $1,180.00. Wyckoff's Market Rating: 2.0

Silverprices closed near mid-range today on a corrective pullback from good gainsFriday that produced a bullish weekly high close. The silver bears still havethe overall near-term technical advantage but recent price action hints at amarket bottom being in place. Silver bulls' next upside price breakoutobjective is closing December futures prices above solid technical resistanceat $15.07 an ounce. The next downside price breakout objective for the bears isclosing prices below solid support at the September low of $13.965. Firstresistance is seen at last week’s high of $15.755 and then at $14.500. Nextsupport is seen at today’s low of $14.395 and then at $14.25. Wyckoff's MarketRating: 3.0.

DecemberN.Y. copper closed down 160 points at 278.90 cents today. Prices closed nearmid-range today. The copper bears have the overall near-term technicaladvantage, but recent good gains suggest a market bottom is in place. Also, abull flag pattern has formed on the daily bar chart. Copper bulls' next upsideprice objective is pushing and closing prices above solid technical resistanceat the 290.00 cents. The next downside price objective for the bears is closingprices below solid technical support at the August low of 257.45 cents. Firstresistance is seen at today’s high of 282.25 cents and then at 285.00 cents.First support is seen at today’s low of 275.55 cents and then at 272.00 cents.Wyckoff's Market Rating: 4.0.

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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