Gold Pressured By Bearish Outside Markets

(Kitco News) - Gold prices ended the U.S. day session modestly lower Monday. Lower crude oil prices and a higher U.S. dollar index helped depress gold and silver prices. December Comex gold was last down $3.20 an ounce at $1,273.70. December Comex silver was last up $0.029 at $17.825 an ounce.

The key outside markets on Monday saw Nymex crude oil prices sharply lower and hitting a four-week low. Prices were poised to close at a technically bearish monthly low close Monday. Reports said a weekend meeting between Iran and Iraq produced no results on how OPEC can put together an oil-production-cut package. Recently weaker oil prices have weighed on world stock markets and the precious metals. Meantime, the U.S. dollar index was firmer and trading not far below its recent 8.5-month high.

The marketplace on Monday was still digesting the surprise news Friday afternoon that the FBI is ostensibly reopening its investigation regarding Hillary Clinton’s email server messages. That news initially jolted financial markets Friday, sending the U.S. stock market lower and gold prices higher. However, as the trading week got under way today, that news lost much of its relevance as far as markets are concerned—at least for now. Still, the U.S. presidential election that is just over one week away is a major factor for many world stock and financial markets.

Big economic events this week include the Bank of England’s monetary policy meeting Thursday and the U.S. employment report on Friday.

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Technically, December gold futures prices closed nearer the session low today. The gold bears still have the slight overall near-term technical advantage. However, Friday’s bullish weekly high close that saw prices hit a three-week high, suggests a market bottom is in place. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,243.20. First resistance is seen at today’s high of $1,280.50 and then at last week’s high of $1,285.40. First support is seen at $1,270.00 and then at $1,262.00. Wyckoff’s Market Rating: 4.5

December silver futures prices closed near mid-range today. The silver market bears have the overall near-term technical advantage. However, Friday’s bullish weekly high close and the sideways price action of the past month could be “basing” that puts in a market bottom. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.46 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $18.04 and then at $18.25. Next support is seen at last week’s low of $17.465 and then at $17.315. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed up 125 points at 220.55 cents today. Prices closed nearer the session high, hit a four-week high and closed at a bullish monthly high close today. More short covering and bargain hunting were featured. The copper bulls and bears are now back on a level overall near-term technical playing field. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the September high of 221.90 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the October low of 208.45 cents. First resistance is seen at today’s high of 221.10 cents and then at 221.90 cents. First support is seen at today’s low of 218.15 cents and then at 216.00 cents. Wyckoff's Market Rating: 5.0.

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