Strong U.S. Dollar Squelches Gold, Silver Buyers

(Kitco News) - Gold and silver prices ended the U.S. day session weaker Tuesday. The selling pressure came mainly due to a rally in the U.S. dollar index, which hit a 5.5-month high. December Comex gold was last down $5.40 an ounce at $1,276.20.December Comex silver was down $0.275 at $16.96 an ounce.

World stock markets were mostly firmer Tuesday, boosted by energy stocks as oil prices have hit two-year highs this week. Many world stock indexes are at record or multi-year highs. The bull market runs in world stock markets are also an underlying negative for the competing asset class, precious metals.

Nymex crude oil futures prices were slightly down in afternoon trading Tuesday, on mild profit taking. The recent rally in the oil market is an underlying bullish element for most of the other raw commodity markets, including the metals. However, it will be very tough for Nymex crude to sustain prices at or just above $60.00 a barrel.

Technically, December gold futures prices closed nearer the session low today. Bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. 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 last week’s high of $1,285.10 and then at $1,290.00. First support is seen at today’s low of $1,272.30 and then at this week’s low of $1,266.40. Wyckoff's Market Rating: 5.0

December silver futures prices closed near the session low today and took back most of Monday’s good gains. The silver bulls and bears are back on a level overall near-term technical playing field. 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 this week’s high of $17.27 and then at $17.50. Next support is seen at this week’s low of $16.795 and then at $16.60. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed down 680 points at 308.95 cents today. Prices closed nearer the session low. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 325.95 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 312.00 cents and then at 315.00 cents. First support is seen at today’s low of 308.30 cents and then at 307.30 cents. Wyckoff's Market Rating: 6.5.