Gold, Silver Prices Firmer On Short Covering, Bargain Buying

(Kitco News) - Gold and silver prices aremodestly up in early-afternoon U.S. trading Tuesday. Some mild short coveringin the futures markets and bottom-fishing in the cash markets were featured inboth metals today, following Monday's solid losses. The U.S. dollar index bymidday had backed well down from its early-morning six-week high, which alsoworked in favor of the precious metals market bulls. December gold futures werelast up $2.90 an ounce at $1,191.50. December Comex silver was last up $0.081at $14.41 an ounce.

Goldprices upticked a bit at mid-morning on the surprising news that U.S. UnitedNations Ambassador Nikki Haley is resigning. However, her resignation wasapparently not due to differences with the Trump administration and the initialmarketplace uncertainty on the matter quickly dissipated.

Globalstock markets were mixed today. There are early chart clues the U.S. stockindexes have put in at least near-term market tops, if not major tops. If suchis indeed the case it would be bullish for the competing asset class ofprecious metals.

Worldequity markets are still unnerved by rising government bond yields that arepulling investor interest away from stocks. The benchmark U.S. 10-year Treasurynote on Tuesday hit a yield of 3.25%, which is a 7.5-year high.

Theworld's two largest economies are continuing to escalate their trade war thathas also now turned into a war of words. The U.S. secretary of state andChinese foreign minister exchanged harsh words on Monday.

TheInternational Monetary Fund on Monday lowered its world economic growthforecasts due to the U.S.-China trade war and the presently shaky secondaryworld currency markets. This week, the Chinese yuan is in focus as it continuesto depreciate against the U.S. dollar even as Chinese monetary officials workto stem the yuan's slide.

Theother key outside market today finds November Nymex crude oil prices higher andtrading just below $75.00 a barrel.

Technically,December gold futures bears still have the solid overall near-term technicaladvantage. Gold bulls' next upside near-term price breakout objective is toproduce a close above solid technical resistance at $1,220.70. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at the August low of $1,167.10. First resistance is seen attoday's high of $1,195.80 and then at $1,200.00. First support is seen at theSeptember low of $1,184.30 and then at $1,180.00. Wyckoff's Market Rating: 2.0

Decembersilver bears have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at the October high of $14.95 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support atthe September low of $13.965. First resistance is seen at $14.50 and then atthis week's high of $14.70. Next support is seen at today's low of $14.285 andthen at $14.195. Wyckoff's Market Rating: 2.0.

DecemberN.Y. copper closed up 425 points at 280.95 cents today. Prices closed near thesession high today. The copper bears still have the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the 290.00 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat the August low of 257.45 cents. First resistance is seen at 282.50 cents andthen at 285.00 cents. First support is seen at 277.50 cents and then at 275.00cents. Wyckoff's Market Rating: 3.5.

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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