Gold Ends Lower On Chart-Based Selling

(Kitco News) - Gold prices ended the U.S. day session weaker Wednesday, on mostly technical selling amid a lack of fresh, markets-moving fundamental news on this day. December Comex gold was last down $6.40 an ounce at $1,324.10. December Comex silver was last down $0.04 at $19.125 an ounce.

Some U.S. economic data released Wednesday did not significantly impact the metals or other markets. Also, Fed Chair Janet Yellen spoke on banking issues before Congress, but did not address U.S. monetary policy.

Traders and investors worldwide were watching the OPEC oil cartel meeting in Algiers, which began Wednesday.  Most energy market watchers do not believe OPEC at this meeting will make any significant moves to reduce their collective crude oil output, or to forge an agreement with Russia to stabilize world oil prices. However, there is now talk that OPEC could come to an oil-production-cut agreement at its November meeting. Saudi Arabia has reportedly said it will cut its production at that time. Nymex crude oil futures prices were higher Wednesday on a short-covering bounce following solid losses posted Tuesday. World markets have been extra-sensitive to crude oil’s daily price movements recently, with lower oil prices tending to pressure the equity and metals markets.

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Technically, December gold futures prices closed near mid-range today. The gold bulls still have the overall near-term technical advantage but have faded at mid-week. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,357.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,305.50. First resistance is seen at today’s high of $1,331.00 and then at $1,340.00. First support is seen at today’s low of $1,321.10 and then at $1,318.50. Wyckoff’s Market Rating: 6.0

December silver futures prices closed near mid-range today. The silver market bulls have the slight overall near-term technical advantage but are fading this week. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the September high of $20.235 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 $19.61 and then at this week’s high of $19.82. Next support is seen at today’s low of $18.975 and then at the September low of $18.715. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 160 points at 218.70 cents today. Prices closed nearer the session high today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 212.00 cents. First resistance is seen at Tuesday’s high of 219.65 cents and then at last week’s high of 220.65 cents. First support is seen at this week’s low of $2.1610 and then at 213.90 cents. Wyckoff's Market Rating: 5.5.

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