Gold, Silver See More Profit Taking After Recent Advances

(Kitco News) - Gold and silver prices ended the U.S. day session lower Thursday, on more profit taking from recent gains that pushed both metals to a three-week high Wednesday. The bulls in both metals still possess a comfortable near-term technical advantage. December Comex gold was last down $9.30 an ounce at $1,339.90. December Comex silver was last down $0.193 at $19.655 an ounce.

This week’s featured market event was today’s meeting of the European Central Bank. The ECB did not make any changes in monetary policy, as expected, but did issue fresh economic forecasts and assessments at today’s meeting. Neither that data nor Mario Draghi’s press conference after the ECB meeting provided any fresh clues on the timing of future monetary policy moves.

The key “outside markets” saw crude oil prices are solidly higher today and that did limit selling pressure in the precious metals. The U.S. dollar index traded firmer today but the greenback suffered significant losses earlier this week.

Technically, December gold futures prices closed nearer the session low on more profit taking from recent gains. The gold bulls still have the near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,374.20. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,305.50. First resistance is seen at today’s high of $1,353.90 and then at this week’s high of $1,357.60. First support is seen at $1,335.00 and then at $1,330.00. Wyckoff’s Market Rating: 6.0

December silver futures prices closed near the session low on more profit from recent gains. The silver market bulls still have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the August high of $20.925 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $18.46. First resistance is seen at today’s high of $20.02 and then at this week’s high of $20.235. Next support is seen at $19.50 and then at this week’s low of $19.38. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 25 points at 210.10 cents today. Prices closed nearer the session high on more tepid short covering. The copper bears still have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the 218.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of 203.15 cents. First resistance is seen at this week’s high of 211.20 cents and then at 213.00 cents. First support is seen at today’s low of 208.35 cents and then at last week’s low of 206.95 cents. Wyckoff's Market Rating: 3.0.

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