Gold Boosted To 3-Week High By Slumping U.S. Dollar, Stocks

(Kitco News) - A sell off in the U.S. dollar index and world equity markets helped to push gold prices modestly higher and to a three-week high Thursday. The near-term chart posture for gold has improved this week, which is also inviting technically oriented traders to the long side of the market. December Comex gold was last up $3.80 an ounce at $1,287.50. December Comex silver was down $0.153 at $16.985 an ounce.

World stock markets were mostly weaker overnight. U.S. stock indexes were solidly lower and showing their worst daily losses in over three months Thursday. The weaker equity markets today were supportive element for the competing asset class of precious metals. However, the world and U.S. stock indexes are just seeing normal corrective, profit-taking pullbacks from recent gains that put the indexes at or near record or multi-year highs. More selling pressure in the stock markets would continue to boost the metals.

Gold this week has also seen a bit of safe-haven buying interest, mainly due to some developments in Saudi Arabia that included a shake-down of big businessmen and princes, who the Saudi government accused of corruption.

Nymex crude oil futures prices were higher and are trading near a two-year high Thursday afternoon. Rallying oil prices recently are also benefitting the precious metals markets. However, it is still my bias that Nymex crude won’t be able to sustain prices at or above $60.00 a barrel.

Technically, December gold futures prices closed nearer the session high today. This week’s price action has produced a bullish upside “breakout” from a recent sideways trading range on the daily bar chart. Bulls have 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 $1,292.90 and then at $1,300.00. First support is seen at today’s low of $1,280.50 and then at Wednesday’s low of $1,276.10. Wyckoff's Market Rating: 5.5

December silver futures prices closed nearer the session low today. The silver bulls 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 $17.145 and then at this week’s high of $17.27. Next support is seen at this week’s low of $16.795 and then at $16.60. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed down 145 points at 308.50 cents today. Prices closed nearer the session low and hit a four-week low today. The copper bulls have the overall near-term technical advantage, but are fading as prices have been trending lower for three weeks. 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 305.85 cents and then at 303.00 cents. Wyckoff's Market Rating: 6.5.