Gold Backs Off On Profit Taking, Bounce In Greenback

(Kitco News) - Gold prices were ending the U.S. day session solidly lower on some normal profit taking after hitting a 12-month high last Friday. Less risk aversion in the marketplace to start the trading week worked against the safe-haven metal today. A rebound in the U.S. dollar index today was also a daily bearish outside market for the precious metals. December Comex gold was last down $15.70 an ounce at $1,335.40. December Comex silver prices were last down $0.198 at $17.92 an ounce.

Risk assets were back in favor Monday as traders and investors worldwide were assuaged by news that Hurricane Irma, while still devastating much of Florida, was not the catastrophic storm that many weather forecasters thought it would be. Also, North Korea did not launch another missile over the weekend. Saturday was a North Korean holiday and many thought the rogue nation would show its military might by firing another missile. However, odds are high the U.S.-North Korea stare-down will be back on the front burner of the marketplace sooner rather than later.

The U.S. stock market was sharply higher Monday, and made new daily highs in early-afternoon trading. That pushed gold prices to their daily lows at the same time.

The key outside markets on Monday saw the U.S. dollar index solidly higher on short covering and a corrective technical bounce after hitting a 2.5-year low last week. Meantime, Nymex crude oil futures were higher Monday.

There was no major U.S. economic data released Monday.

Technically, December gold futures prices closed nearer the session low. The gold bulls still have the solid overall near-term technical advantage. Prices are in a steep nine-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,378.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,307.00. First resistance is seen at today’s high of $1,344.60 and then at $1,350.00. First support is seen at today’s low of $1,335.20 and then at $1,331.00. Wyckoff's Market Rating: 7.5

December silver futures prices closed nearer the session high and saw profit taking after hitting a four-month high last Friday. The silver bulls have the firm overall near-term technical advantage. Prices are in a nine-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $19.00 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 $18.00 and then at last week’s high of $18.29. Next support is seen at today’s low of $17.77 and then at $17.50. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed up 260 points at 306.75 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 308.30 cents and then at 310.00 cents. First support is seen at today’s low of 303.25 cents and then at 300.00 cents. Wyckoff's Market Rating: 7.5.