Gold Ends Slightly Up In Lackluster, Two-Sided Trading

(Kitco News) - Gold prices ended the U.S. day session modestly higher Tuesday, on some short covering and bargain hunting following recent losses that saw prices hit a nine-month low last week. However, gains in the safe-haven metal were limited today by continued investor optimism, evidenced by major U.S. stock indexes all scoring record highs. December Comex gold was last up $2.40 an ounce at $1,212.30. December Comex silver was last up $0.139 at $16.66 an ounce.

Look for even quieter trading the rest of this week, as the U.S. Thanksgiving holiday is on Thursday, when U.S. markets are closed. Friday typically sees one of the slowest trading days of the year in many markets. And on Wednesday many U.S. market participants will hit the exit doors early.

The key outside markets for the precious metals on Tuesday saw Nymex crude oil futures prices hit a three-week high overnight and then back off to trade weaker on some profit taking from recent gains. Energy market watchers reckon the OPEC oil cartel may be able to come to a final agreement to cut production at next week’s meeting. Iran and Iraq are reportedly backing the production-cut plan.

The U.S. dollar index was slightly firmer today as trading turns choppy this week after hitting a 13-year high late last week. The strong greenback has been a bearish weight on the raw commodity sector the past two weeks.

On the central-bank-watch front, it appears most of the world marketplace has factored into market price structures a Federal Reserve interest rate rise at the December FOMC meeting. Such had been bearish for the gold and silver markets, but now that the news is “baked into the cake,” an confirmation of the rate hike in December is not likely to cause a big markets reaction, and could even spark a “sell the rumor, buy the fact” scenario for gold and silver.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Technically, December gold futures prices closed near mid-range today. The gold bears have the firm overall near-term technical advantage. Prices are in a 4.5-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 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 $1,220.90 and then at $1,225.00. First support is seen at today’s low of $1,205.60 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 today. The silver market bears have the firm overall near-term technical advantage. Prices are in a 4.5-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 $16.885 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 290 points at 254.40 cents today. Prices closed near mid-range. 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 257.75 cents and then at 260.00 cents. First support is seen today’s low of 251.65 cents and then at 250.00 cents. Wyckoff's Market Rating: 7.0.

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