Gold, Silver Suffering From Little Risk Aversion

(Kitco News)- Gold and silver prices are modestly lower in early-afternoon U.S. trading Wednesday.Prices have moved off their daily lows, however. With little risk aversionamong traders and investors at present, the safe-haven metals remain on shakyground. December gold futures were last down $1.90 an ounce at $1,212.60.December Comex silver was last down $0.059 at $14.84 an ounce.

U.S.stock indexes hit new record highs again today, to underscore the “risk-on”mentality in the marketplace at present. Traders and investors at presentreckon the stock market is the “main game in town” as money keeps flowing intothose paper assets-at the expense of hard assets like gold, silver and otherraw commodities, except crude oil, which is not far below this year’s highs.

TheU.S. is presently negotiating a trade agreement with Canada after reaching adeal with Mexico earlier this week. Part of the investor/trader optimism in theworld marketplace this week is due to ideas the U.S. will come to terms withmore of its trading partners at some point down the road, and some soonerrather than later.

Thekey outside markets today find the U.S. dollar index weaker as the bears havegained some downside near-term technical momentum. Meantime, Nymex crude oilprices are higher and trading above $69.00 a barrel.

Technically,gold bears still have the overall near-term technical advantage but a pricedowntrend on the daily bar chart has been negated to suggest a market bottom isin place. Gold bulls' next upside near-term price breakout objective is toproduce a close in December futures above solid resistance at $1,226.00. Bears'next near-term downside price breakout objective is pushing prices below solidtechnical support at the August low of $1,167.10. First resistance is seen atthis week’s high of $1,220.70 and then at $1,225.00. First support is seen atthis week’s low of $1,205.80 and then at $1,200.00. Wyckoff's Market Rating:3.0

December silver futures bears have the overallnear-term technical advantage. Silver bulls' next upside price breakoutobjective is closing prices above solid technical resistance at $15.50 anounce. The next downside price breakout objective for the bears is closingprices below solid support at $14.00. First resistance is seen at $15.00 andthen at this week’s high of $15.07. Next support is seen at $14.555 and then atthe August low of $14.405. Wyckoff's Market Rating: 2.5.

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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