Gold Ends Slightly Up in Quieter Trading; New Inputs Awaited

(Kitco News) - Gold and silver markets ended quieter trading sessions slightly higher Monday. Market participants are looking for new fundamental information to drive their markets. December Comex gold was last up $1.50 an ounce at $1,257.00. December Comex silver was last up $0.044 at $17.48 an ounce.

Federal Reserve Vice Chairman Fischer was speaking at a luncheon in New York today. Wire service headlines from Fischer’s speech were not moving the markets as of this writing. However, his comments appeared to suggest the Federal Reserve wants to raise interest rates to put U.S. monetary policy and the U.S. economy in better positions down the road.

World bond markets saw keener selling interest to start the trading week, led by U.K. gilts, which in turn have been pressured by a weakening British pound. There are growing concerns about the world’s major central banks starting to tighten their monetary policies, which in turn should stoke inflationary price pressures. That’s bearish for bond markets but should be ultimately bullish for the precious metals. U.S. Treasury bonds and notes were firmer Monday on short-covering bounces following recent selling pressure.

Nymex crude oil prices were lower Monday morning and trading just below $50.00 a barrel. The other key “outside market” saw the U.S. dollar index trading slightly lower after hitting a seven-month high overnight.

Technically, December gold futures prices closed nearer the session high today. The gold bears have the overall near-term technical advantage. Prices are in a 3.5-month-old downtrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,280.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at last week’s high of $1,266.80 and then at $1,271.60. First support is seen at $1,250.00 and then at the October low of $1,243.20. Wyckoff’s Market Rating: 3.5

December silver futures prices closed near mid-range today. The silver market bears have the overall near-term technical advantage. Prices are in a 3.5-month-old downtrend on the daily bar chart. 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 today’s high of $17.704 and then at last week’s high of $17.855. Next support is seen at last week’s low of $17.315 and then at the October low of $17.115. Wyckoff's Market Rating: 3.5.

December N.Y. copper closed down 30 points at 210.75 cents today. Prices closed nearer the session low today and hit a four-week low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 218.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the September low of 206.40 cents. First resistance is seen at today’s high of 212.00 cents and then at 214.00 cents. First support is seen at today’s low of 210.00 cents and then at 209.00 cents. Wyckoff's Market Rating: 3.0.

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