Gold, Silver Prices Pounded By Strong Dollar, China Worries

(Kitco News) - Gold andsilver prices aresolidly lower in early-afternoon U.S. trading Monday, and close to their dailylows. The safe-haven metals did not get any benefit from an uptick in riskaversion to start the trading week today. Instead, both are being pressured bya strong U.S. dollar on the foreign exchange market, and worries about preciousmetals demand coming out of China. December gold futures were last down $16.80an ounce at $1,188.80. December Comex silver was last down $0.324 at $14.325 anounce.

Worldstock markets were mostly lower today, with steep losses seen in the Chinesestock market after it was closed last week for a public holiday. Chinesemonetary officials during the weekend loosened monetary policy a bit more butthat did not stop their stock market sell off. The U.S.-China trade war isapparently starting to significantly impact the Chinese economy, promptingideas the country will curb its raw commodity imports.

TheU.S. government, including the Treasury bond cash market, is closed for theColumbus Day holiday today. Canadian markets are shut for the Thanksgivingholiday.

Worldequities are also still pressured by rising government bond yields that arepulling investor interest away from stocks. U.S. stock indexes are in verymature bull market runs that have many wondering if the end is near.

Risk-offattitudes to start the trading week are also being perpetuated by the newItalian anti-establishment government not falling into line with European Unionrules on a budget.

Technically,December gold futures prices are now at the bottom of the recent trading range,which gives the bears fresh power. The gold bears have the solid overallnear-term technical advantage. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at $1,220.70.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at the August low of $1,167.10. First resistance isseen at $1,200.00 and then at today's high of $1,208.00. First support is seenat today's low of $1,186.00 and then at the September low of $1,184.30.Wyckoff's Market Rating: 2.0

Decembersilver futures prices closed nearer the session low today. A fledglingthree-week-old uptrend on the daily bar chart was negated today. The silverbears have the solid overall near-term technical advantage and gained freshpower today. Silver bulls' next upside price breakout objective is closingprices above solid technical resistance at $15.07 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 attoday's high of $14.70. Next support is seen at today's low of $14.285 and thenat $14.195. Wyckoff's Market Rating: 2.0.

DecemberN.Y. copper closed up 25 points at 276.55 cents today. Prices closed nearer thesession high today. 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 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 280.00 cents andthen at 285.00 cents. First support is seen at today's low of 273.50 cents andthen at 270.00 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.

Many new players enter TSXV gold Top 25 by market cap

Gold stocks mixed on moderate metal gain, flat equities

Gold stocks lead the large cap miners by far over H1/25

Gold stocks up as the metal price and equities gain

Mixed outlook for gold as it remains range bound for past three months