Bearish "Outside Markets" Squelch Gold, Silver Bulls

(Kitco News) -  Gold and silver prices are modestly lower in early-afternoon U.S. trading Tuesday, pressured by bearish outside markets that include another sharp drop in crude oil prices and a rally in the U.S. dollar index. However, there’s another outside market force that’s limiting the downside in the safe-haven metals: a major sell-off in the U.S. stock market recently that has now erased the gains seen in 2018. December gold futures were last down $2.60 an ounce at $1,222.80. December Comex silver was last down $0.098 at $14.305 an ounce.

Global stock markets were also mostly lower overnight, following the solid losses posted in the U.S. stock indexes on Monday. Technology stocks are taking the brunt of the selling pressure recently. It still appears the U.S. stock indexes put in at least near-term tops last month, if not major market tops. That’s a bullish underlying factor for the competing asset class, precious metals.

Look for quieter trading in the U.S. Wednesday as the Thanksgiving holiday falls on Thursday. U.S. markets close early Wednesday, with Friday the “Black Friday” sale affair that finds many traders and investors out for the day, shopping for Christmas gift deals.

Technically, the gold bears still have the overall near-term technical advantage. However, recent price action begins to suggest a near-term market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the October high of $1,246.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the November low of $1,196.60. First resistance is seen at today’s high of $1,229.50 and then at the November high of $1,239.30. First support is seen at this week’s low of $1,218.50 and then at last Friday’s low of $1,213.70. Wyckoff's Market Rating: 3.5

The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $14.95 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at $14.50 and then at $14.775. Next support is seen at today’s low of $14.205 and then at $14.00. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 245 points at 277.45 cents today. Prices closed nearer the session low after hitting a six-week high early on today. Prices also scored a bearish “outside day” down on the daily bar chart. 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 280.00 cents and then at today’s high of at 284.60 cents. First support is seen at today’s low of 275.30 cents and then at 273.30 cents. Wyckoff's Market Rating: 3.0.