Gold Weaker As U.S. Stock Market, Greenback Gain

(Kitco News) - Gold prices are modestly down in early-afternoon U.S. trading Tuesday. A strongerU.S. dollar index that scored a new for-the-move high today is weighing on the precious metals markets. A rebound in the U.S. stock market so far today is also a negative element for the safe-haven gold and silver markets. December gold futures were last down $2.10 an ounce at $1,225.40. December Comex silver was last up $0.018 at $14.46 an ounce.

Monday’s sell off in the U.S. stock market pushed the indexes to six-month lows. There is still strong near-term technical evidence the U.S. stock indexes have put in market tops. If so, that’s bullish for the competing asset class, precious metals.

Reports Monday afternoon said the Trump administration will impose tariffs on all Chinese goods imported into the U.S., if the meeting between Presidents Trump and Xi Jinpin in Argentina in late November do not produce results. This news helped sink the U.S. stock market Monday afternoon, but it also prompted some worries about demand for metals coming from China, as its economy has weakened due to U.S. tariffs.

The other key outside market today finds November Nymex crude oil prices lower, hitting a two-month low, and trading around $66.00 a barrel. The slumping crude oil market is an underlying bearish element for the raw commodity sector, including the precious metals. Crude oil is arguably the leader of the raw commodity sector.

The key U.S. economic data point of the week, if not the month, will be Friday’s November employment report from the Labor Department.

Technically, the gold bulls still have the slight overall near-term technical advantage but are fading and need to show fresh power soon to keep their chart edge. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,232.50 and then at this week’s high of $1,237.60. First support is seen at today’s low of $1,221.40 and then at $1,220.00. Wyckoff's Market Rating: 5.5

Silver prices closed near mid-range and hit another two-week low today. The silver bears have the firm overall near-term technical advantage. 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 prices below solid support at the September low of $13.965. First resistance is seen at this week’s high of $14.78 and then at $14.88. Next support is seen at today’s low of $14.375 and then at the October low of $14.255. Wyckoff's Market Rating: 3.0.

December N.Y. copper closed down 755 points at 266.50 cents today. Prices closed near the session low and hit a six-week low today. The copper bears have the firm overall near-term technical advantage and gained more power today. Prices are in a choppy, six-week-old downtrend on the daily bar chart. 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 270.00 cents and then at today’s high of 273.30 cents. First support is seen at 265.00 cents and then at of 262.50 cents. Wyckoff's Market Rating: 2.0.