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Gold, Silver Gains As Crude Oil Sees Solid Rebound

Kitco News

(Kitco News- Gold and silver prices are moderately higher and at two-week highs in early-afternoon U.S. trading Wednesday, supported by a big rebound in crude oil prices and a weaker U.S. dollar index today. December gold futures were last up $6.80 an ounce at $1,228.00. December Comex silver was last up $0.236 at $14.505 an ounce.

The U.S. dollar index trading is weaker but still not far below this month’s 1.5-year high. Meantime, Nymex crude oil futures prices are solidly higher on a corrective rebound from Tuesday’s sharp losses that pushed prices to a 12-month low of $52.77 a barrel.

Global stock markets were mostly firmer overnight. U.S. stock indexes are also higher in New York, following strong losses on Tuesday that wiped out this year’s gains in the stock indexes. It still appears the U.S. stock indexes have put in at least near-term tops, if not major market tops. If so, that’s bullish for the competing asset class of precious metals.

This afternoon is likely to see very quiet activity in the U.S., ahead of the U.S. Thanksgiving holiday on Thursday. Friday is the “Black Friday” sale affair that finds many traders and investors out for the day, shopping for Christmas gift deals.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bears still have the overall near-term technical advantage. However, recent price action begins to suggest a near-term market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the October high of $1,246.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the November low of $1,196.60. First resistance is seen at today’s high of $1,230.90 and then at the November high of $1,239.30. First support is seen at this week’s low of $1,218.50 and then at $1,213.70. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears still have the firm overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $14.95 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 today’s high of $14.54 and then at $14.775. Next support is seen at this week’s low of $14.205 and then at $14.00. Wyckoff's Market Rating: 2.5.

December N.Y. copper closed up 195 points at 278.65 cents today. Prices closed nearer the session high today. The copper bears have the overall near-term technical advantage. 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 280.40 cents and then at today’s high of at 284.60 cents. First support is seen at this week’s low of 275.30 cents and then at 273.30 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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