Gold Weaker As U.S. Stock Market, Greenback Gain

(Kitco News) - Gold prices aremodestly down in early-afternoon U.S. trading Tuesday. A strongerU.S. dollar index that scored a new for-the-move high today is weighing on the preciousmetals markets. A rebound in the U.S. stock market so far today is also anegative element for the safe-haven gold and silver markets. December gold futures were last down $2.10 an ounce at $1,225.40. December Comex silver waslast up $0.018 at $14.46 an ounce.

Monday'ssell off in the U.S. stock market pushed the indexes to six-month lows. Thereis still strong near-term technical evidence the U.S. stock indexes have put inmarket tops. If so, that's bullish for the competing asset class, preciousmetals.

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, but it also prompted someworries about demand for metals coming from China, as its economy has weakeneddue to U.S. tariffs.

Theother key outside market today finds November Nymex crude oil prices lower,hitting a two-month low, and trading around $66.00 a barrel. The slumping crudeoil market is an underlying bearish element for the raw commodity sector,including the precious metals. Crude oil is arguably the leader of the rawcommodity sector.

Thekey U.S. economic data point of the week, if not the month, will be Friday'sNovember employment report from the Labor Department.

Technically,the gold bulls still have the slight overall near-term technical advantage butare fading and need to show fresh power soon to keep their chart edge. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical 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 today's high of $1,232.50 and then atthis week's high of $1,237.60. First support is seen at today's low of$1,221.40 and then at $1,220.00. Wyckoff's Market Rating: 5.5

Silverprices closed near mid-range and hit another two-week low today. The silverbears have the firm overall near-term technical advantage. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at $15.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the September low of$13.965. First resistance is seen at this week's high of $14.78 and then at$14.88. Next support is seen at today's low of $14.375 and then at the Octoberlow of $14.255. Wyckoff's Market Rating: 3.0.

DecemberN.Y. copper closed down 755 points at 266.50 cents today. Prices closed nearthe session low and hit a six-week low today. The copper bears have the firmoverall near-term technical advantage and gained more power today. Prices arein a choppy, six-week-old downtrend on the daily bar chart. Copper bulls' nextupside price objective is pushing and closing prices above solid technicalresistance at the September high of 287.10 cents. The next downside priceobjective for the bears is closing prices below solid technical support at theAugust low of 257.45 cents. First resistance is seen at 270.00 cents and thenat today's high of 273.30 cents. First support is seen at 265.00 cents and thenat of 262.50 cents. 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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