Gold, silver see routine downside corrections in existing price uptrends

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(Kitco News) - Gold and silver prices arelower at midday Tuesday, on some normal backing and filling on the chartsfollowing recent gains. Both metals' bulls remain comfortable at present, asnear-term price uptrends are in place and the overall path of least resistanceis sideways to higher. December gold futures were last down $14.40 at $1,792.40.December Comex silver was last down $0.487 at $24.11 an ounce.

TheU.S. stock indexes are firmer at midday, with the S&P 500 stock indexhitting another record high overnight. The keener risk appetite early this weekis also a negative for the safe-haven metals. Corporate earnings reports arefront and center for stock market traders, at present. Keep in mind thattraders and investors are fickle. This week focus is on positive corporateearnings data that is pushing the stock indexes higher. Come next week, inflationconcerns that include rapidly rising energy costs and global shippingconstrictions may have the marketplace in a more somber mood.

Thekey outside markets today see the U.S. dollar index higher-also a negative forthe metals. Crude oil prices are higher and trading around $85.00 a barrel.Don't be surprised if continually rising energy prices heading into theNorthern Hemisphere winter start to bite at trader and investor sentiment.Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.64%. Forperspective, the yield on the 10-year German bund is presently -0.107% and theU.K. 10-year gilt is at 1.147%.

Technically,December gold futures bulls still have the overall near-term technicaladvantage amid a four-week-old price uptrend in place on the daily bar chart.Bulls' next upside price objective is to produce a close above solid resistanceat the September high of $1,836.90. Bears' next near-term downside priceobjective is pushing futures prices below solid technical support at $1,750.00.First resistance is seen at $1,800.00 and then at this week's high of$1,811.50. First support is seen at today's low of $1,783.00 and then at$1,775.00. Wyckoff's Market Rating: 6.0

December silver futures bulls still have the overallnear-term technical advantage. Prices are in a four-week-old uptrend on thedaily chart. Silver bulls' next upside price objective is closing prices abovesolid technical resistance at $25.00 an ounce. The next downside priceobjective for the bears is closing prices below solid support at $23.00. Firstresistance is seen at this week's high of $24.695 and then at the Septemberhigh of $24.945. Next support is seen at today's low of $23.925 and then at$23.615. Wyckoff's Market Rating: 6.0.

DecemberN.Y. copper closed down 490 points at 447.85 cents today. Prices closed nearthe session low today. The copper bulls have the overall near-term technicaladvantage but have faded recently. Prices are still in a four-week-old uptrendon the daily bar chart, but now just barely. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at theOctober high of 482.30 cents. The next downside price objective for the bearsis closing prices below solid technical support at 430.00 cents. Firstresistance is seen at this week's high of 456.85 cents and then at 460.00cents. First support is seen at last week's low of 446.10 cents and then at440.00 cents. Wyckoff's Market Rating: 6.0.

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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