Comex gold ended near steady Tuesday, as bargain-hunting buying interest once again surfaced at lower price levels that were seen early in the session. A rebound in the U.S. dollar index did limit the upside in gold, however. December Comex gold last traded down $0.30 at $1,338.60 an ounce. Spot gold was last quoted down $1.50 at $1,339.50.

The present major driving force in the precious metals and other markets, the U.S. dollar, made a solid rebound Tuesday following a better-than-expected reading from the latest consumer confidence index report. Short covering and position evening were featured in the U.S. dollar index. There are many analysts looking for the greenback to stabilize in the near term, after the recent strong downside price pressure. The expected U.S. quantitative easing of monetary policy, which is likely to be announced next week, is already mostly factored into the markets' price structures. But until proven otherwise, the still-weak overall technical and fundamental posture of the U.S. dollar index remains a significantly bullish underlying factor for the precious metals.

News wire reports overnight said physical demand for gold (coins,  bars, jewelry) remains strong in Asian countries, which is and has been limiting the downside in the gold market.

The London P.M. gold fixing was $1,329.50 versus the previous P.M. fixing of $1,337.50 an ounce.

From an important technical perspective, December gold futures closed nearer the session high Tuesday. Bulls need to show some good price strength this week to repair the near-term chart damage that was inflicted last week. Bulls do still have the overall near-term and longer-term technical advantage. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at $1,366.00. Bears' next near-term downside price objective is closing prices below major psychological support at $1,300.00. First resistance is seen at Tuesday's high of $1,343.80 and then at this week's high of $1,349.50. Support is seen at Tuesday's low of $1,328.10 and then at $1,325.00. Wyckoff's Market Rating: 7.0.

December silver futures closed up 33.6 cents at $23.88 an ounce Tuesday. Prices closed near the session high and scored a bullish "outside day" up on the daily bar chart. Silver scored gains Tuesday despite a stronger U.S. dollar, which is impressive. Some of last week's near-term chart damage was repaired in silver Tuesday. Silver bulls still have the overall near-term technical advantage, but need to show more power this week to repair all of last week's near-term chart damage. The next downside price objective for the bears is closing prices below solid technical support at last week's low of $22.84. Bulls' next upside price objective is producing a close above solid technical resistance at last week's high of $24.515 an ounce. First resistance is seen at Tuesday's high of $23.95 and then at $24.075. Next support is seen at $23.50 and then at $23.30. Wyckoff's Market Rating: 7.5.

December N.Y. copper closed up 110 points at 387.40 cents Tuesday. Prices closed nearer the session high today and hit a fresh 27-month high. A stronger-than-expected U.S. consumer confidence index today helped to boost copper. The copper bulls have the solid overall near-term technical advantage. Prices are in a five-month-old uptrend on the daily bar chart. Bulls' next upside objective is pushing and closing prices above major psychological resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at last week's low of 372.00 cents. First resistance is seen at Tuesday's high of 389.30 cents and then at 390.00 cents. First support is seen at 385.00 cents and then at Tuesday's low of 383.95 cents. Wyckoff's Market Rating: 8.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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