Mild price losses for gold, silver, on routine consolidation

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(Kitco News) - Gold and silver prices area bit weaker in early U.S. trading Tuesday, on some normal backing and fillingon the charts following recent gains. Both metals' bulls are comfortable atpresent, as near-term price uptrends are in place and the path of leastresistance is sideways to higher. December gold futures were last down $1.80 at$1,805.00. December Comex silver was last down $0.122 at $24.47 an ounce.

Globalstock markets were mixed in overnight trading. The U.S. stock indexes are pointedto higher openings when the New York day session begins, with the S&P 500stock index hitting another record high overnight. Corporate earnings reportsare front 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,inflation concerns 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 slightly down. Crude oilprices are near steady and trading around $83.65 a barrel. Don't be surprisedif continually rising energy prices heading into the Northern Hemisphere winterstart to bite at trader and investor sentiment. Meantime, the 10-year U.S.Treasury note yield is presently fetching 1.64%. For perspective, the yield onthe 10-year German bund is presently -0.107% and the U.K. 10-year gilt is at 1.147%.

U.S.economic data due for release Tuesday includes the weekly Johnson Redbook andchain store retail sales reports, the monthly house price index, the S&P-Case-Shillerhouse indexes, the Richmond Fed business survey, the consumer confidence index,and new residential sales.

Technically,December gold futures bulls have the overall near-term technical advantage asprices are in a four-week-old uptrend on the daily chart. Bulls' next upside priceobjective is to produce a close above solid resistance at the September high of$1,836.90. Bears' next near-term downside price objective is pushing futures pricesbelow solid technical support at $1,750.00. First resistance is seen at thisweek's high of $1,811.50 and then at the October high of $1,815.50. First supportis seen at $1,800.00 and then at this week's low of $1,793.00. Wyckoff's MarketRating: 6.5

The silver bulls have the overall near-term technicaladvantage. Prices are in a four-week-old uptrend on the daily bar chart. Silverbulls' next upside price objective is closing December futures prices above solidtechnical resistance at $25.00 an ounce. The next downside price objective forthe bears is closing prices below solid support at $23.00. First resistance is seenat this week's high of $24.695 and then at the September high of $24.945. Next supportis seen at the overnight low of $24.31 and then at $24.00. Wyckoff's Market Rating:6.5.

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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