Comex gold futures prices closed higher and hit a fresh 10-week high Tuesday, after experiencing some downside price pressure in the early going. Safe-haven and chart-related buying interest were featured and prices are now within striking distance of the all-time record high scored in June. December gold last traded up $8.30 an ounce at $1,259.40. Spot gold was last quoted up $11.10 at $1,258.25.

Gold saw safe-haven buying support emerge Tuesday due to renewed worries about the European Union's economy and its financial system. A report in the Wall Street Journal questioned the viability of the stress tests that were conducted on EU financial institutions recently. That pressured the Euro currency and boosted the U.S. dollar index, as the greenback is also considered a safe-haven investment asset, along with gold and U.S. Treasuries. U.S. T-Bonds and T-Notes futures prices also posted solid gains Tuesday. The U.S. stock indexes were weaker. Indeed, investor risk appetite has decreased this week, as the stronger-than-expected U.S. jobs report issued last Friday has quickly worn off.
 
The London P.M. gold fixing was $1,256.75 versus the previous P.M. fixing of $1,249.00 an ounce.

Bullish technical momentum is also fueling buying interest in the gold market. December gold futures closed nearer the session high as bulls have upside technical momentum, have the solid technical advantage and are poised to soon challenge the all-time high of $1,270.60, scored in June. Prices are in a six-week-old uptrend on the daily bar chart. Bulls' next near-term upside technical objective is to produce a close above solid chart resistance at the all-time high of $1,270.60. Bears' next near-term downside price objective is closing prices below solid technical support at last week's low of $1,233.50. First resistance is seen at Tuesday's high of $1,261.60 and then at $1,270.60. Support is seen at $1,250.00 and then at Tuesday's low of $1,246.40. Wyckoff's Market Rating: 8.5.

December silver futures closed down 3.9 cents at $19.91 an ounce Tuesday. Prices closed nearer the session high and hit a fresh two-year high early on. Mild profit taking was seen Tuesday. The key "outside markets" were in a bearish posture for silver Tuesday, as the U.S. dollar index was higher, while crude oil and U.S. stock index prices were weaker. Silver bulls still have the solid near-term technical advantage. The next downside price objective for the bears is closing prices below solid technical support at last week's low of $18.86. Bulls' next upside price objective is producing multiple daily closes above major psychological resistance at $20.00 an ounce. First resistance is seen at Tuesday's high of $20.045 and then at $20.25. Next support is seen at $19.75 and then at Tuesday's low of $19.585. Wyckoff's Market Rating: 8.0.

December N.Y. copper closed down 290 points at 347.10 cents Tuesday. Prices closed near mid-range. The key "outside markets" were in a bearish posture for copper Tuesday, as the U.S. dollar index was higher, while crude oil and U.S. stock index prices were weaker. Prices Friday hit a fresh four-month high. The bulls still have the near-term technical advantage. Bulls' next upside objective is pushing and closing prices above solid technical resistance at 360.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at 350.00 cents and then at Tuesday's high of 353.45 cents. First support is seen at 345.00 cents and then at Tuesday's low of 342.00 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

Editor’s Note: Meet the Kitco News Team at the upcoming Kitco Metals eConference September 12-13, 2010. A not-to-be missed event featuring Ron Paul, Marc Faber and other industry heavyweights. The eConference is free with Pre- Registration www.kitcoeconf.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 precious metal products, 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.