Gold Up On More Short Covering, Value Buying

(Kitco News) - Gold and silver prices ended the U.S. day session moderately higher Tuesday. Short covering in the futures market and perceived value-buying in the cash market were featured today. December Comex gold was last up $6.90 an ounce at $1,263.50. December Comex silver was last up $0.176 at $17.645 an ounce.

The data point of the day Tuesday saw the U.S. consumer price index for September rise by 0.3% from August and was up 1.5%, year-on-year. The data was in line with market expectations. With many market watchers thinking the Federal Reserve is on the verge of raising U.S. interest rates, inflation data worldwide will be more closely watched in the coming months. U.K. consumer prices in September rose at the fastest pace in two years, the Office for National Statistics said Tuesday. The U.K. CPI reading was up 1.0%, year-on-year, for the highest monthly rise in two years.

Slightly higher crude oil prices Tuesday were also mildly bullish the raw commodity sector in general, including precious metals. Nymex crude is trading just above $50.00 a barrel. The other key “outside market” Tuesday saw the U.S. dollar index also in a bullish posture for the metals, as traded slightly lower on a corrective pullback after hitting a seven-month high on Monday.

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 today’s low of $1,255.90 and then at $1,250.00. Wyckoff’s Market Rating: 4.0

December silver futures prices closed nearer the session high today. The silver market bears still 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 last week’s high of $17.855 and then at $18.04. Next support is seen at today’s low of $17.455 and then at last week’s low of $17.315. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed down 10 points at 210.60 cents today. Prices closed nearer the session low today and closed at a four-week low close. 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 212.30 cents and then at 214.00 cents. First support is seen at this week’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