(Kitco News) - Comex December gold futures ended the U.S. day session lower, pressured by some profit taking from recent gains and by a firmer U.S. dollar index. Trading has turned choppy, but gold remains in a three-week-old uptrend on the daily chart. December gold last traded down $16.70 at $1,665.90 an ounce. Spot gold last traded down $10.00 an ounce at $1,665.00. December Comex silver last traded down $1.039 at $31.75 an ounce.

U.S. and European stock markets were weaker Thursday. It was more of a “risk off” day in the market place early Thursday. These risk off days recently have been more bearish than bullish for the gold market—even though gold is perceived as a safe-haven asset. Thus, the erratic and more unpredictable nature of the gold market.

The U.S. dollar index traded firmer Thursday but had backed well down from its daily high in afternoon trading. The dollar index bulls have faded recently and near-term chart damage has been inflicted to suggest the index has put in a near-term market top. This is a significantly bullish development for the precious metals market bulls. Meantime, crude oil futures prices traded weaker Thursday. Crude oil bulls do still have some upside technical momentum to suggest prices can trade sideways to higher in the near term. That is also a bullish scenario for the precious metals.

The London P.M. gold fixing was $1,656.00 versus the previous P.M. fixing of $1,682.00.

Technically, December gold futures prices closed near mid-range Thursday. Bulls still have some upside near-term technical momentum and have the slight near-term technical advantage. Prices have been trending higher on the daily chart for three weeks. Bulls' next upside technical objective is to produce a close above solid technical resistance at $1,705.40. Bears' next near-term downside price objective is closing prices below psychological support at $1,600.00. First resistance is seen at Thursday’s high of $1,686.10 and then at this week’s high of $1,693.90. First support is seen at Thursday’s low of $1,654.30 and then at $1,650.00. Wyckoff's Market Rating: 5.5.

December silver futures prices closed nearer the session low Thursday. Profit taking from recent gains was seen. Silver bulls and bears are on a level near-term technical playing field. Silver bulls' next upside price objective is producing a close above strong technical resistance at $33.585 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $28.435. First resistance is seen at $32.50 and then at Thursday’s high of $32.80. Next support is seen at Thursday’s low of $31.455 and then at $31.00. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed down 660 points 332.75 cents Thursday. Prices closed near mid-range. Copper bears still have the overall near-term technical advantage as a nine-week-old downtrend is still in place on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 350.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at Thursday’s high of 337.45 cents and then at 340.00 cents. First support is seen at Thursday’s low of 328.60 cents and then at 325.00 cents. Wyckoff's Market Rating: 3.0.

Follow me on Twitter! If you want daily, or nightly, up-to-the-second market analysis on gold and silver price action, then follow me on Twitter. It's free, too. My account is @jimwyckoff .

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

Don’t Miss a Word! Read Kitco News on the Go with Kcast Gold Live for iPad! Get it now!

<<Back to more Kitco exclusive news