Gold Weaker As U.S. Dollar Index Powers Higher
(Kitco News) - Gold prices areagain modestly down in early U.S. trading Tuesday. A stronger U.S. dollar indexthat scored a new for-the-move high overnight is weighing on the preciousmetals markets today. Higher U.S. stock indexes to start the trading day arealso a negative for the safe-haven gold and silver markets. December goldfutures were last down $3.40 an ounce at $1,224.20. December Comex silver waslast down $0.007 at $14.435 an ounce.
Globalstock markets were mixed to mostly lower overnight. U.S. stock indexes arepointed toward higher openings when the New York day session begins, on anupside correction following Monday's sell off that pushed the indexes tosix-month lows. There is still strong near-term technical evidence the U.S.stock indexes have put in market tops.
Significantselling pressure in the U.S. stock market today would likely prompt somesafe-haven demand for gold.
ReportsMonday afternoon said the Trump administration will impose tariffs on allChinese goods imported into the U.S., if the meeting between Presidents Trumpand Xi Jinpin in Argentina in late November do not produce results. This newshelped sink the U.S. stock market Monday afternoon.
Inovernight news, the Euro zone reported its latest quarterly gross domesticproduct rose only a paltry 0.6% in the third quarter, year-on-year. Thatcompares to the latest U.S. GDP third-quarter growth rate of 3.5%.
Theother key outside market today finds November Nymex crude oil prices lower andtrading around $66.50 a barrel. The slumping crude oil market is an underlyingbearish element for the raw commodity sector, including the precious metals.Crude oil is arguably the leader of the raw commodity sector.
Thekey U.S. economic data point of the week, if not the month, will be Friday'sNovember employment report from the Labor Department.
U.S.economic data due for release Tuesday includes the weekly Goldman Sachs andJohnson Redbook retail sales reports, the S&P/Case-Shiller home priceindexes, and the consumer confidence index.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bulls have the slight near-term technical advantage but they are fadingthis week. Bulls' next upside price objective is to produce a close in Decemberfutures above solid resistance at $1,250.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at $1,200.00.First resistance is seen at the overnight high of $1,232.50 and then at Monday'shigh of $1,237.60. First support is seen at the overnight low of $1,221.40 andthen at $1,220.00. Wyckoff's Market Rating: 5.5
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Decembersilver futures bears have the firm overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical 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 Monday's high of $14.78 and then atthe October high of $14.95. Next support is seen at the October low of $14.255and then at $14.00. Wyckoff's Market Rating: 3.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@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.