Gold, Silver Prices Near Steady On Conflicting "Outside Market" Forces

(Kitco News) - Gold andsilver prices recouped mild early losses to trade around unchanged levels onthe day, in early-afternoon dealings Tuesday. Gold hit another four-week lowbelow $1,200.00 overnight. The silver market fell to a two-month low today.Precious metals were somewhat supported when the U.S. dollar index sold offtoday, on a corrective pullback after hitting a 1.5-year high on Monday. However,the steep sell off in crude oil recently is a bearish outside market workingagainst the metals. December gold futures were last down $0.90 an ounce at$1,202.60. December Comex silver was last down $0.011 at $14.00 an ounce.

Nymex crude oil futures prices are sharply lower today, hit an eight-month lowovernight and are trading around $57.50 a barrel. The steep slide in oil pricesis a bearish development for most of the raw commodity sector, as oil is arguablythe leader of that sector.

Europeaninvestors are unsettled early this week as Tuesday is the day Italy's budget issupposed to fall into line with the constricts of the European Union budgetprocess. Meantime, reports said U.K. Prime Minister Theresa May has rejectedthe latest European Union Brexit proposal. The Euro currency fell to a 16-monthlow against the U.S. dollar on Monday.

Technically,the gold bears have the firm overall near-term technical advantage. Gold bulls'next upside near-term price breakout objective is to produce a close inDecember futures above solid technical resistance at $1,225.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at the September low of $1,184.30. First resistance is seenat this week's high of $1,212.00 and then at $1,220.00. First support is seenat today's low of $1,196.60 and then at $1,190.00. Wyckoff's Market Rating: 2.5

Thesilver bears have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing December futures pricesabove solid technical resistance at last week's high of $14.775 an ounce. Thenext downside price breakout objective for the bears is closing prices belowsolid support at $13.50. First resistance is seen at this week's high of $14.18and then at last Friday's high of $14.425. Next support is seen at today's lowof $13.92 and then at $13.75. Wyckoff's Market Rating: 1.5.

DecemberN.Y. copper closed up 165 points at 269.30 cents today. Prices closed nearerthe session low. The copper bears have the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the September high of 287.10 cents.The next downside price objective for the bears is closing prices below solidtechnical support at the August low of 257.45 cents. First resistance is seenat today's high of 274.85 cents and then at 278.00 cents. First support is seenat today's low of 266.25 cents and then at the November low of 264.25 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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