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Gold Prices Lifted By Weaker U.S.Dollar, Short Covering

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(Kitco News) - Gold prices are moderately higher in early-afternoon U.S. trading Wednesday. Gold and silver are supported on some buying back of previously sold positions (short covering) by the shorter-term futures traders. A lower U.S. dollar index on this day also supported some buying interest in the precious metals markets. December gold futures were last up $6.10 an ounce at $1,209.00. December Comex silver was last up $0.115 at $14.30 an ounce.

There have been no major news developments to move the markets this week, other than the U.S.-China trade dispute that has been ongoing for months. There continues to be little to sometimes only modest risk aversion in the world marketplace at present, and that continues to limit the upside in the safe-haven gold and silver markets.

The other key outside market today finds Nymex crude oil prices higher and trading just below $71.00 a barrel. However, there is strong chart resistance just overhead for crude that has capped rallies in recent months. 

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bears still have the overall near-term technical advantage. However, prices have been trading sideways for three two weeks, which suggests a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,220.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at today’s high of $1,211.00 and then at last week’s high of $1,218.00. First support is seen at $1,200.00 and then at this week’s low of $1,197.50. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bears still have the solid overall near-term technical advantage. There are still no strong, early clues to suggest a market bottom is close at hand. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.07 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at last week’s high of $14.39 and then at $14.50. Next support is seen at this week’s low of $14.065 and then at last week’s low of $13.965. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 10 points at 272.95 cents today. Prices closed near mid-range today and hit a three-week high. The copper bears still have the overall near-term technical advantage, but more price gains this week would begin to suggest a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 283.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at today’s high of 275.35 cents and then at 276.65 cents. First support is seen at 270.00 cents and then at 265.00 cents. Wyckoff's Market Rating: 3.0.

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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