Risk-On Attitudes Sinking Gold And Silver Markets

(Kitco News) - Gold and silver prices were ending the U.S. day session modestly lower Tuesday. Both markets were headed toward three-week low daily closes. A quieter world geopolitical scene is making for little trader/investor risk aversion in the marketplace at present, and that’s bearish for the safe-haven gold and silver markets. Rallying world stock markets recently - many of which are at or near record highs--are firm evidence risk-on attitudes are pervasive. December Comex gold was last down $3.80 an ounce at $1,277.10. December Comex silver was last down $0.135 at $16.94 an ounce.

While world stock markets that have been in bull runs for quite some time are also keeping money flows away from hard assets like the gold and silver markets, when the air starts to come out of the stock market bullish balloon (and it will at some point) money flows out of paper assets and into hard assets will significantly benefit the precious metals market bulls.

The U.S. dollar was slightly lower Tuesday. However, the USDX has been trending higher for around three weeks. The other key “outside market saw Nymex crude oil futures prices firmer and trading above $52.00 a barrel. Crude oil bulls have the slight overall near-term technical advantage.

Traders are looking ahead to Thursday, when the European Central Bank holds its regular monetary policy meeting. Many expect the ECB to announce more details on the winding down of its bond-buying program.

Technically, December gold futures prices closed nearer the session low and closed at a three-week low close today. Bulls and bears are on a level overall near-term technical playing field, but the bears have momentum on their side. 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 the October low of $1,262.80. First resistance is seen at today’s high of $1,285.30 and then at $1,292.90. First support is seen at this week’s low of $1,273.60 and then at $1,270.00. Wyckoff's Market Rating: 5.0

December silver futures prices closed nearer the session low today. The silver bulls still have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. 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 the October low of $16.345. First resistance is seen at today’s high of $17.17 and then at $17.315. Next support is seen at this week’s low of $16.87 and then at $16.765. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 100 points at 319.80 cents today. Prices closed nearer the session low. 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 330.00 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 323.90 cents and then at the October high of 325.95 cents. First support is seen at this week’s low of 315.20 cents and then at last week’s low of 311.20 cents. Wyckoff's Market Rating: 7.5.