Gold Slightly Up; Gains Limited By Higher U.S. Equities

(Kitco News) - Gold prices are slightly higher in early-afternoon U.S. trading Thursday. Some mild safe-haven buying is being offset by solid gains in U.S. stock indexes at midday. However, nobody knows what late-session twists and turns the stock market will make.December gold futures were last up $1.40 an ounce at $1,232.40. December Comex silver was last down $0.041 at $14.635 an ounce.

A higher U.S. dollar index that is at a nine-week high and near the high for the year is also working against the precious metals bulls on this day.

Global stock markets were mixed to lower Thursday, following the strong losses in U.S. stock indexes Wednesday that briefly put those indexes into negative territory for this year. Asian stock markets were mostly lower overnight. China’s and South Korea’s stock markets are now in bear market territory, having dropped over 20% from their bull market highs.

There are still near-term technical clues the U.S. stock indexes have put in near-term market tops, if not major tops. If that’s indeed the case, it’s a bullish element for hard assets like the precious metals.

Traders and investor can point to no one element that is spooking the world market place at present. There are geopolitical issues that include the U.S.-China trade war, U.S.-Saudi Arabia tensions over the murdered Saudi journalist, and Italy’s defiance over forming its budget to meet European Union rules. And there is creeping inflation in the world economies at present. Most don’t deem the inflation rates problematic, yet. However, there is a new generation of worldwide investors that have ostensibly never experienced inflation. So a 3% inflation rate could be spooking them.

The U.S. economic highlight this week will be the first estimate of third-quarter GDP due out Friday morning. GDP is seen up 3.4% in the third quarter, on an annual basis.

Technically, the gold bulls have the overall near-term technical advantage. Prices this week saw a bullish upside “breakout” from a sideways and choppy trading range. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,220.00. First resistance is seen at this week’s high of $1,243.00 and then at $1,250.00. First support is seen at $1,225.00 and then at $1,220.00. Wyckoff's Market Rating: 6.0

The silver bears have the overall near-term technical advantage. However, the bulls are working on restarting a price uptrend on the daily chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing December prices below solid support at the September low of $13.965. First resistance is seen at last week’s high of $14.88 and then at the October high of $14.95. Next support is seen at this week’s low of $14.54 and then at last week’s low of $14.47. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed down 15 points at 275.60 cents today. Prices closed nearer the session high today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 287.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at today’s high of 277.35 cents and then at 280.00 cents. First support is seen at the October low of 271.30 cents and then at of 270.00 cents. Wyckoff's Market Rating: 3.0.