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Gold Down On Profit-Taking, Strong U.S. Dollar

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(Kitco News) - Gold prices are moderately lower in early-afternoon U.S. trading Monday. Some profit taking from the shorter-term futures traders is featured. The stronger U.S. dollar index today that is hovering near last week’s nine-week high also worked against the precious metals market bulls today. There is also less risk aversion in the marketplace early this week as world stock markets have settled down, for now. December gold futures were last down $7.80 an ounce at $1,228.10. December Comex silver was last down $0.25 at $14.45 an ounce.

U.S. stock indexes on Friday fell to six-month lows before posting rebounds on the day. U.S. and world stock markets were quieter today and traded mixed. Stock market bulls will be glad to get the historically turbulent month of October out of the way and hopefully get a “Santa Claus rally” this year. However, more stock market volatility on the downside in the near term would benefit safe-haven gold and silver.

The other key outside market today saw November Nymex crude oil prices weaker and trading around $67.25 a barrel.

The key U.S. economic data point of the week, if not the month, will be Friday’s November employment report from the Labor Department.

Live 24 hours gold chart [Kitco Inc.]

Technically, the bulls still have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,237.60 and then at last week’s high of $1,246.00. First support is seen at $1,225.00 and then at $1,220.00. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

Silver prices closed nearer the session low and hit a two-week low today. The silver bears have the firm overall near-term technical advantage and gained fresh power today. 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 the September low of $13.965 in December futures. First resistance is seen at today’s high of $14.78 and then at $14.88. Next support is seen at today’s low of $14.405 and then at the October low of $14.255. Wyckoff's Market Rating: 3.0.

December N.Y. copper closed down 65 points at 273.45 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. Prices are in a choppy, six-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 287.10 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 278.00 cents and then at 280.00 cents. First support is seen at 270.00 cents and then at of 267.50 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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