Gold Ends Down Amid Risk-On Attitudes, Bearish Outside Markets

(Kitco News) - Gold prices ended the U.S. day session moderately lower and hit a three-week low Thursday. A generally keener “risk-on” trader and investor mentality worldwide helped to sink the safe-haven metal today. The gold market has backed way off from a six-week high of $1,338.30, scored early Wednesday. December Comex gold was last down $7.80 an ounce at $1,265.70. December Comex silver was last up $0.332 at $18.71 an ounce.

The precious metals bulls are still somewhat excited about the prospect of better worldwide demand for raw commodities in the coming months. This is evidenced by good gains in silver prices today and a copper market that is on fire this week—gaining over 30 cents a pound in four trading sessions and trading at a 16-month high. The rallying world stock markets are a sign of optimism that the U.S. and world economies could be in for a growth spurt in 2017. Rising interest rates this week are also leading to notions of rising inflationary price pressures down the road. All of the above would suggest better demand for raw commodities.

The key “outside markets” on Thursday saw the U.S. dollar index higher. The greenback is surging following the surprise Trump victory. Meantime, Nymex crude oil prices were weaker today. The daily posture of these two markets was a negative for the precious metals today.

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Technically, December gold futures prices closed nearer the session low today and hit a three-week low after spiking to a six-week high of $1,338.30 Wednesday. The gold bulls and bears are on a level overall near-term technical playing field. 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 $1,250.00. First resistance is seen at $1,275.00 and then at today’s high of $1,292.50. First support is seen at today’s low of $1,258.00 and then at $1,250.00. Wyckoff's Market Rating: 5.0

December silver futures prices closed near mid-range today and closed at a five-week high close. The silver market bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $19.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at $19.00 and then at $19.25. Next support is seen at today’s low of $18.38 and then at $18.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 860 points at 254.55 cents today. Prices closed nearer the session high and hit a 16-month high today. The copper bulls have the solid overall near-term technical advantage. Ideas of better demand for copper in the coming months, including from U.S. infrastructure needs under the new Trump administration, have pushed copper prices sharply higher. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 275.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 238.00 cents. First resistance is seen at today's high of 259.10 cents and then at 265.00 cents. First support is seen at 250.00 cents and then at 245.00 cents. Wyckoff's Market Rating: 9.0.

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