Gold, Silver Prices See Mild Pressure From Stable USDX, Rally in U.S. Stocks

(Kitco News) - Gold pricesare modestly down, while silver is just slightly lower, in early-afternoon U.S.trading Tuesday. The U.S. dollar index has moved up from its daily lows atmidday, while the U.S. stock market is in rally mode, to put mild sellingpressure on the two precious metals markets. December gold futures were last down$2.20 an ounce at $1,203.50. December Comex silver was last down $0.018 at$14.205 an ounce.

Worldstock markets were also mostly higher overnight, to underscore the lack of riskaversion in the global marketplace at present. That’s bearish for thesafe-haven gold and silver markets. Stock market bulls point out that we arenow more than half way through what can be the historically turbulent month ofSeptember with no significant speed bumps yet encountered.

Themarketplace today did not show a reaction to the news Monday afternoon thatPresident Trump will slap another $200 billion in tariffs against China, towhich China vowed to retaliate, and to which Trump said he would retaliate tothe retaliation. Reports said the world’s two largest economies still plan tohold trade talks later this month. Some market watchers reckon the two sideswill come to an agreement despite all the bluster.

Theother key outside market today finds Nymex crude oil prices higher and tradingjust below $70.00 a barrel. Stiff chart resistance above the market has cappedgains, and will likely continue to do so.

Technically,December gold futures bears still have the overall near-term technicaladvantage. However, prices have been trading sideways for three two weeks,which suggests a market bottom is in place. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat $1,220.70. Bears' next near-term downside price breakout objective ispushing prices below solid technical support at the August low of $1,167.10.First resistance is seen at this week’s high of $1,209.70 and then at lastweek’s high of $1,218.00. First support is seen at $1,200.00 and then at thisweek’s low of $1,197.50. Wyckoff's Market Rating: 3.0

Decembersilver futures bears have the solid overall near-term technical advantage.There are no early clues to suggest a market bottom is close at hand. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $15.07 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $13.50. Firstresistance is seen at last week’s high of $14.39 and then at $14.50. Nextsupport is seen at this week’s low of $14.065 and then at last week’s low of$13.965. Wyckoff's Market Rating: 1.5.

DecemberN.Y. copper closed up 810 points at 273.15 cents today. Prices closed nearerthe session high today and scored a big and bullish “outside day” up on thedaily bar chart. Heavy short covering and bargain hunting were featured. Thecopper bears still have the overall near-term technical advantage. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at the August high of 283.80 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 today’s high of273.75 cents and then at 276.65 cents. First support is seen at 270.00 centsand then at 265.00 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.

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