Gold Ends Slightly Up, But Down From Daily Highs

(Kitco News) - Gold prices ended the U.S. day session slightly higher Monday, on mild short covering in the futures market and a bit of bargain hunting in the cash market, following recent selling pressure that saw prices hit a nine-month low last Friday. However, the safe-haven metal was down from the day’s best levels as the U.S. stock market rallied, to suggest keener risk appetite remains in the marketplace. December Comex gold was last up $2.00 an ounce at $1,210.80. December Comex silver was last down $0.089 at $16.535 an ounce.

The outside markets were in a bullish posture for the precious metals on this day. The U.S. dollar hit a 13-year high last week and saw a corrective pullback Monday. The stronger greenback has been causing selling pressure across the raw commodity sector. Meantime, Nymex crude oil prices were sharply higher and hit a three-week high Monday. The thinking of energy market watchers now is that the OPEC oil cartel just may be able to come to a final agreement to cut production at next week’s meeting, as Iran and Iraq are reportedly now backing the plan.

Precious metals markets were also somewhat supported by comments from China’s President Xi Jinping, who on Monday said his country will back a free trade area in the Asian region. That could mean more demand for raw commodities coming from China.

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Technically, December gold futures prices closed nearer the session low today. The gold bears have the firm overall near-term technical advantage. Prices are in a four-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 last week’s high of $1,233.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,217.80 and then at $1,225.00. First support is seen at today’s low of $1,205.40 and then at last week’s low of $1,201.30. Wyckoff's Market Rating: 3.0

December silver futures prices closed nearer the session low and closed at a 5.5-month low close today. The silver market bears have the firm overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $16.755 and then at $17.00. Next support is seen at last week’s low of $16.43 and then at $16.25. Wyckoff's Market Rating: 3.0.

December N.Y. copper closed up 465 points at 251.40 cents today. Prices closed nearer the session high. The copper bulls have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 273.45 cents. The next downside price objective for the bears is closing prices below solid technical support at 235.00 cents. First resistance is seen at today’s high of 253.50 cents and then at 257.00 cents. First support is seen today’s low of 246.45 cents and then at last week’s low of 242.60 cents. Wyckoff's Market Rating: 7.0.

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