Gold Prices Down As Greenback Rallies, Euro Hammered

(Kitco News) - Gold prices were ending the U.S. day session lower, near the session low, and hit a three-week low Thursday. Gold and silver prices saw pressure from a strong rally in the U.S. dollar index and a plunge in the Euro currency, in the wake of the monthly European Central Bank meeting. December Comex gold was last down $8.50 an ounce at $1,270.50. December Comex silver was last down $0.115 at $16.81 an ounce.

Thursday’s European Central Bank regular monetary policy meeting resulted in no interest rate changes from the ECB. However, the central bank said it is reducing its monthly bond-buying program amount by half, but is extending the timeframe of the bond buying. This outcome was about what the marketplace expected. However, ECB Chief Mario Draghi’s press conference was deemed to favor the dovish camp on monetary policy, and that allowed the U.S. dollar to rally to a three-month high and sink the Euro currency to a three-month low.

The most important U.S. economic report of the week is due out Friday morning: the advance third-quarter GDP estimate. The number is expected to come in at up 2.7% versus the second-quarter reading of up 3.1%.

Technically, December gold futures prices closed near the session low, hit a three-week low and scored a bearish “outside day” down on the daily bar chart. Bears have gained the slight overall near-term technical advantage. 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 $1,280.00 and then at this week’s high of $1,285.30. First support is seen at today’s low of $1,269.60 and then at $1,262.80. Wyckoff's Market Rating: 4.5

December silver futures prices closed near the session low and hit a three-week low today. The silver bulls and bears are on a level overall near-term technical playing field, but the bears have some momentum on their side. 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 $17.00 and then at this week’s high of $17.17. Next support is seen at $16.75 and then at $16.50. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed down 55 points at 317.75 cents today. Prices closed near mid-range and saw mild profit taking. The copper bulls have the firm overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. 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 320.00 cents and then at this week’s high of 323.90 cents. First support is seen at this week’s low of 314.40 cents and then at last week’s low of 311.20 cents. Wyckoff's Market Rating: 7.0.