Gold Ends Weaker, Hits 3-Month Low, as Charts Remain Firmly Bearish
Wednesday November 11, 2015 13:41
(Kitco News) - Gold prices ended the U.S. day session modestly lower and dropped to another three-month low Wednesday. Some chart consolidation was featured early in the day to keep prices holding around unchanged. However, the technical sellers stepped up as the session progressed to push prices below unchanged. December Comex gold was last down $3.20 at $1,085.30 an ounce. December Comex silver was last down $0.041 at $14.315 an ounce.
Overall trading activity in the U.S. was quieter Wednesday as it was the Veterans Day holiday, when most of the U.S. government and most banks were closed. Lower Nymex crude oil prices that were poised to close at a 2.5-month low close Wednesday were also a bearish “outside market” working against the precious metals bulls. The other outside market saw the U.S. dollar index weaker on a corrective pullback from recent strong gains that pushed prices to a 6.5-month high on Tuesday.
There was slightly downbeat economic data coming out of China Wednesday. China’s industrial production rose 5.6% in October, year-on-year, for the slowest pace in seven months. The reading was up 5.7% in September, year-on-year.
Technically, December gold futures prices closed nearer the session low today. The gold bears have the solid overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,100.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the July low of $1,073.70. First resistance is seen at $1,090.00 and then at this week’s high of $1,094.90. First support is seen at today’s low of $1,183.20 and then at $1,180.00. Wyckoff’s Market Rating: 1.5
December silver futures prices closed nearer the session low and hit a 10-week low today. The silver market bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at Tuesday’s high of $14.555 and then at this week’s high of $14.76. Next support is seen at today’s low of $14.23 and then at $14.00. Wyckoff's Market Rating: 1.5.
December N.Y. copper closed down 5 points at 221.70 cents today. Prices closed nearer the session high after hitting a contract low today. Copper bears have the solid overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the November high of 236.20 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 215.00 cents. First resistance is seen at this week’s high of 225.10 cents and then at 227.50 cents. First support is seen at today’s contract low of 219.70 cents and then at 218.00 cents. Wyckoff's Market Rating: 1.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
