Follow Kitco News on the Updated  Kcast Gold Live!+ for the iPhone -- Now You Can Watch Kitco Video News Right from Your Phone!

(Kitco News) - Comex December gold futures ended the U.S. day session sharply lower Thursday and hit a fresh two-week low. Gold buyers have stepped to the sidelines ahead of this weekend’s European Union leader meeting in Brussels. The uncertainty surrounding the latest efforts by European officials to solve the EU debt and financial crisis have limited buying interest in the precious metals this week. A firmer U.S. dollar index as the trading session progressed Thursday also worked to pressure the precious metals markets. December gold last traded down $34.10 at $1,612.90 an ounce. Spot gold last traded down $30.60 an ounce at $1,612.50. December Comex silver last traded down $0.987 at $30.29 an ounce.

The gold market started out Thursday’s trade with heavy Asian selling overnight and the market then stabilized at lower price levels in European trading. However, at mid-morning U.S. trading the yellow metal slumped further when the U.S. dollar index moved above unchanged and to its daily high.

Despite being perceived by many as a safe-haven asset, gold has recently failed to get upside traction from the uncertainty regarding the EU debt and financial crisis. That could change at any moment, due to the recent fickle day-to-day trading nature of gold. The market place is awaiting the weekend EU leaders summit in Brussels. While it’s presently not clear what or if anything significant will come out of that meeting, the latest news reports at least say France’s Sarkozy and Germany’s Merkel will meet face to face during the weekend.

It’s likely that if the EU crisis escalates—either by stepped-up violence in Greece or by inability of leaders to come up with substantive measures for dealing with the crisis—that the U.S. dollar would see fresh safe-haven demand. An escalation in the EU debt crisis in the coming days could also prompt fresh safe-haven demand for gold even if the U.S. dollar index also rallies, and even if gold has not recently rallied on the EU crisis up to this point.

Reports say physical demand for gold from India’s festival season has been lackluster so far, but is expected to pick up.

The London P.M. gold fixing was $1,620.00 versus the previous P.M. fixing of $1,652.50.

Technically, December gold futures prices closed nearer the session low Thursday and hit a fresh two-week low. Gold bulls have faded this week. Bears now have the slight near-term technical advantage. 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 $1,625.00 and then at Thursday’s high of $1,646.50. First support is seen at Thursday’s low of $1,604.70 and then at $1,600.00. Wyckoff's Market Rating: 4.5.

December silver futures prices closed nearer the session low Thursday. Silver bears now have the slight near-term technical advantage. 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 the October low of $28.435. First resistance is seen at $31.00 and then at Thursday’s high of $31.375. Next support is seen at Thursday’s low of $29.935 and then at $29.50. Wyckoff's Market Rating: 4.5.

December N.Y. copper closed down 1,880 points 306.90 cents Thursday. Prices closed nearer the session low and hit another fresh two-week low. Copper bears have the solid overall near-term technical advantage and gained more power Thursday as a 2.5-month-old downtrend is 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 the October low of 299.40 cents. First resistance is seen at 310.00 cents and then at 315.00 cents. First support is seen at Thursday’s low of 303.10 cents and then at 299.40 cents. Wyckoff's Market Rating: 1.5.

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, contributing to Kitco News; jwyckoff@kitco.com

<<Back to more Kitco exclusive news

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 precious metal products, 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