Gold, Silver Prices Firmer Amid Shaky U.S. Stock Market

(Kitco News) - Gold andsilver prices aremodestly up in early U.S. trading Tuesday, supported by some mild safe-haven demandas the U.S. stock indexes have seen heavy selling pressure so far this week. December gold futures were last up $3.60 an ounce at $1,228.90. December Comex silver was last up $0.062 at $14.47 an ounce.

Globalstock markets were also mostly lower overnight, following the solid lossesposted in the U.S. stock indexes on Monday. Technology stocks are taking thebrunt of the selling pressure recently. It still appears the U.S. stock indexesput in at least near-term tops last month, if not major market tops.

Thisweek could see a quieter trading as the U.S. Thanksgiving holiday falls onThursday. U.S. markets close early Wednesday, with Friday the “Black Friday”sale affair that finds many traders and investors out for the day, shopping forChristmas gift deals.

Thekey outside markets today find the U.S. dollar index trading firmer and not farbelow this month’s 1.5-year high. Meantime, Nymex crude oil futures prices are lowerand not far above last week’s 11-month low.

U.S.economic data due for release Tuesday includes the weekly Johnson Redbook andGoldman Sachs retail sales reports, and new residential construction.

Technically,gold bears have the overall near-term technical advantage. Bulls’ next upsideprice objective is to produce a close in December futures above solidresistance at the November high of $1,239.30. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at theSeptember low of $1,184.30. First resistance is seen at the November high of $1,239.30and then at the October high of $1,246.00. First support is seen at today’s lowof $1,221.60 and then at Monday’s low of $1,218.50. Wyckoff's Market Rating: 3.5

Decembersilver futures bears still have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $14.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $13.50. Firstresistance is seen at $14.50 and then at $14.775. Next support is seen at last Friday’slow of $14.215 and then at $14.00. Wyckoff's Market Rating: 2.0.

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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