Gold, Silver Prices Up As U.S. Dollar Dips, Oil Bounces

(Kitco News) - Gold andsilver prices aremodestly up in early U.S. trading Wednesday, supported by a weaker U.S. dollar indexon this day and by a rebound in the beleaguered crude oil market. December goldfutures were last up $2.60 an ounce at $1,223.80. December Comex silver waslast up $0.141 at $14.41 an ounce.

Globalstock markets were mostly firmer overnight. U.S. stock indexes are also pointedhigher at the New York opening, following strong losses on Tuesday that wipedout this year’s gains in the stock indexes. It still appears the U.S. stockindexes have put in at least near-term tops, if not major market tops. If so,that’s bullish for the competing asset class of precious metals.

Todayis likely to see a quieter trading session in the U.S., ahead of the U.S.Thanksgiving holiday on Thursday. Many U.S. markets close early Wednesday. Fridayis the “Black Friday” sale affair that finds many traders and investors out forthe day, shopping for Christmas gift deals.

Inovernight news, the Paris-based OECD think tank forecast slowing globaleconomic growth in 2019-to 3.5% from 3.7% in its previous forecast.

Thekey outside markets today find the U.S. dollar index trading weaker but not farbelow this month’s 1.5-year high. Meantime, Nymex crude oil futures prices are higheron a corrective rebound from Tuesday’s sharp losses that pushed prices to a12-month low of $52.77 a barrel.

U.S.economic data due for release Wednesday includes the weekly jobless claimsreport, the weekly MBA mortgage applications survey, durable goods orders,leading economic indicators, the University of Michigan consumer sentimentsurvey, existing home sales and the weekly DOE liquid energy stocks report.

Technically,gold bears have the overall near-term technical advantage. Bulls’ next upsideprice objective is to produce a close in December futures above solidresistance at the November high of $1,239.30. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at theSeptember low of $1,184.30. First resistance is seen at this week’s high of$1,229.50 and then at the November high of $1,239.30. First support is seen atthis week’s low of $1,218.50 and then at $1,213.70. Wyckoff's Market Rating: 3.5

Decembersilver futures bears still have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $14.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $13.50. Firstresistance is seen at $14.50 and then at $14.775. Next support is seen at thisweek’s low of $14.205 and then at $14.00. 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.

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