Technical Buying Boosts Gold, Silver Prices

(Kitco News) - Gold and silver prices posted good gains Wednesday, with gold scoring a three-week high. The gold market saw a bullish upside "breakout" from a sideways trading range on the daily bar chart, which prompted technically oriented traders to step in on the buy side. Buy stop orders were also triggered in the gold futures market on today's advance. December gold was last up $9.40 at $1,285.20. December silver was up $0.20 at $17.14.

A power shake-up in Saudi Arabia last weekend and an attempted missile strike on Saudi Arabia from Iran-backed terrorists has injected a bit of anxiety into the world marketplace this week, which has prompted some safe-haven demand for gold and silver.

The key “outside markets” Wednesday saw Nymex crude oil futures prices lower and trading around $56.50 a barrel, after hitting a two-year high on Tuesday. The rally in oil prices the past few weeks has been a bullish underlying element for the raw commodity sector, including the precious metals. However, it will be very tough for Nymex crude to sustain prices at or above $60.00 a barrel.

Meantime, the U.S. dollar index was slightly lower Wednesday on a corrective pullback after hitting a nearly four-month high on Tuesday. The dollar index remains in a near-term price uptrend.

Technically, December gold futures prices closed nearer the session high today. Today’s price action produced a bullish upside “breakout” from the recent sideways trading range on the daily bar chart. Bulls have regained 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 today’s high of $1,288.10 and then at $1,292.90. First support is seen at today’s low of $1,276.10 and then at this week’s low of $1,266.40. Wyckoff's Market Rating: 5.5

December silver futures prices closed near mid-range 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 $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 $17.00 and then at this week’s low of $16.795. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 95 points at 309.85 cents today. Prices closed nearer the session high after hitting a four-week low early on. 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 312.50 cents and then at 315.00 cents. First support is seen at today’s low of 306.65 cents and then at 305.00 cents. Wyckoff's Market Rating: 6.5.