Gold, Silver Prices Punished By Strong Dollar, U.S. Stock Market Rebound

(Kitco News) - Gold andsilver prices arelower and have hit three-week and four-week lows, respectively, in early-afternoonU.S. trading Wednesday. Improving trader and investor risk appetite in themarketplace at mid-week is bearish for the safe-haven metals. Also, a strongerU.S. dollar index that scored a new for-the-move high today is pressuring theprecious metals markets this week. December gold futures were last down $9.00an ounce at $1,216.30. December Comex silver was last down $0.177 at $14.28 anounce.

Globalstock markets were mixed to mostly higher today. U.S. stock indexes are solidlyhigher in afternoon dealings. There is still near-term technical evidence theU.S. stock indexes have put in market tops. Volatility in the U.S. stock marketcould still appear at any time, as seen with Monday afternoon's price swoon.

Todayis the last trading day of the month, which makes it a more important tradingday, from a technical chart perspective.

Today'sU.S. ADP national employment report for October came in at up 227,000 jobs.That much better than the reading of up 180,000 that was expected. The key U.S.economic data point of the week, if not the month, will be Friday's Novemberemployment report from the Labor Department.

Turkey's central bankon Wednesday raised its inflation forecasts for this year and next--predictinga 23.5% rate by the end of 2018. The central bank said the negative impact onthe Turkish economy from the Turkish lira depreciation on the foreign exchangemarket is the main reason for the dire inflation forecast. TheChinese yuan has dropped to a 10-year low against the U.S. dollar this week.There is a debate on whether the Chinese government wants the yuan todepreciate to gain world trade advantages. Or, the government may want to stemthe yuan's slide due to fears of capital flight out of China. These matters warrant close attentionin the coming weeks, as it could prompt financial and currency markets turmoil.

Theother key outside markets today finds November Nymex crude oil prices weakerand trading around $66.00 a barrel after hitting a nine-week low on Tuesday.

Technically,the bulls have lost their slight overall near-term technical advantage. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical resistance at the October high of $1,246.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,200.00. First resistance is seen at $1,220.00 and thenat today's high of $1,225.00. First support is seen at today's low of $1,213.40and then at $1,210.00. Wyckoff's Market Rating: 5.0

Thesilver bears have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $15.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Septemberlow of $13.965. First resistance is seen at today's high of $14.49 and then atthis week's high of $14.78. Next support is seen at today's low of $14.245 andthen at $14.00. Wyckoff's Market Rating: 2.0.

DecemberN.Y. copper closed down 70 points at 265.70 cents today. Prices closed nearmid-range and hit a six-week low today. The copper bears have the firm overallnear-term technical advantage. Prices are in a choppy, six-week-old downtrendon the daily bar chart. Copper bulls' next upside price objective is pushingand closing prices above solid technical resistance at the September high of287.10 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at the August low of 257.45 cents. Firstresistance is seen at 270.00 cents and then at Tuesday's high of 273.30 cents.First support is seen at today's low of 264.60 cents and then at of 262.00cents. 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.

Gold stocks down as markets continue to new highs

TSXV Top 20 Gold market cap shifts away from exploration

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