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Gold Lifted By Sell-Off In U.S. Dollar, Weaker Stocks

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(Kitco News) - Gold prices ended the U.S. day session modestly higher Tuesday. Early price weakness in the yellow metal gave way to a mild rally as the U.S. dollar index and U.S. stock indexes dropped today. December Comex gold was last up $3.60 an ounce at $1,282.50. December Comex silver was last up $0.013 at $17.06 an ounce.

A hotter-than-expected U.S. October producer price index released this morning pushed gold and silver prices to their daily lows. The PPI came in at up 0.4%, which was much higher than the consensus forecast of up 0.1%. The PPI report is one of the more important reports of the week.

However, in late morning action the U.S. dollar index and U.S. stock indexes started to slide, and then gold and silver prices quickly moved up from their daily lows.

Gains in the precious metals were tempered by a sell-off in raw commodity sector leader crude oil Tuesday. Nymex crude oil futures prices were trading around $55.50 a barrel in afternoon trading. The International Energy Agency warned on Tuesday the oil price rally is in jeopardy because of weaker-than-expected demand this year and likely next year, too.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices closed near the session high and scored a bullish “outside day” up on the daily bar chart today. Prices are still in a sideways trading range on the daily bar chart. Bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80. First resistance is seen at last week’s high of $1,289.50 and then at $1,300.00. First support is seen at $1,275.00 and then at today’s low of $1,269.70. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices closed near the session high today. The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.345. First resistance is seen at last week’s high of $17.27 and then at $17.50. Next support is seen at this week’s low of $16.82 and then at $16.60. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed down 555 points at 306.10 cents today. Prices closed nearer the session low and hit a four-week low today. The copper bulls still have the overall near-term technical advantage but are fading as prices have been trending lower for four weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 317.85 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at 310.00 cents and then at today’s high of 312.85 cents. First support is seen at today’s low of 305.20 cents and then at 302.50 cents. Wyckoff's Market Rating: 6.0.

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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