Gold, Silver Gain, At 2-Wk Highs; Bulls Have Momentum

(Kitco News) - Gold and silver prices were ending the U.S. day session up and hit two-week highs Thursday. Gold moved to within a whisker of the important $1,300.00 price level. The precious metals bulls are having a very good week, due to several factors that include safe-haven demand, a weakening U.S. dollar index, chart-based buying, and Federal Reserve members without a clear consensus on the inflation outlook. December Comex gold was last up $6.10 an ounce at $1,295.00. December Comex silver was last up $0.112 at $17.245 an ounce.

The precious metals markets on Thursday got some residual support today from Wednesday afternoon’s minutes from the latest FOMC meeting, which saw members generally agreeing that a 0.25% December interest rate hike is warranted. However, the marketplace perceived there to be some discord among FOMC members regarding inflation and economic growth prospects. Also, some market watchers had reckoned the FOMC minutes would sound a more hawkish tone on U.S. monetary policy, which was not the case.

World stock markets were mostly up Thursday. U.S. stock indexes are near this week’s record highs. Japan’s Nikkei stock index hit another 21-year high Thursday. Stock market traders are not paying much attention to geopolitics at present, as their risk appetites remain strong. If the stock market community does begin to pay more attention to geopolitics (which will likely be the case) then look for increased money flows into the gold and silver markets due to keener risk aversion. Remember that many of the world’s major stock indexes are already in very mature bull-market runs.

The U.S. dollar index was slightly higher in afternoon U.S. trading Thursday, but did hit a two-week low overnight. The greenback bears have gained downside momentum this week. The other key outside market sees Nymex crude oil futures prices lower but still trading above the key $50.00-a- barrel level.

Technically, December gold futures prices closed near mid-range today. Bulls and bears are back 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 last week’s low of $1,262.80. First resistance is seen at $1,300.00 and then at $1,307.00. First support is seen at today’s low of $1,291.80 and then at Wednesday’s low of $1,286.80. Wyckoff's Market Rating: 5.0

December silver futures closed nearer the session high today. The silver bulls have regained the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.345. First resistance is seen at $17.50 and then at $17.70. Next support is seen at $17.00 and then at this week’s low of $16.765. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 245 points at 312.00 cents today. Prices closed nearer the session high and hit another four-week high today. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 317.85 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 313.60 cents and then at 315.00 cents. First support is seen at today’s low of 308.35 cents and then at 305.00 cents. Wyckoff's Market Rating: 8.0.