Gold Prices See Some Chart Consolidation

(Kitco News) – Gold prices are slightly lower in quieter early U.S. trading Monday. Some backing and filling on the daily chart is seen following recent good gains. December gold futures were last down $0.90 an ounce at $1,222.10. December Comex silver was last up $0.003 at $14.385 an ounce.

Global stock markets were mixed in subdued, pre-holiday trading overnight. U.S. stock indexes are slightly lower in early U.S. trading.

It could be a quieter trading week as the U.S. 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.

There are no major news developments early this week to stoke the markets. Reports the CIA has named the Saudi Crown Prince as the one who ordered the killing of the Saudi journalist last month are not moving the markets. Most believe the U.S. has too much at stake with the Saudis as their Middle East ally and U.S. arms purchaser to make a big deal over the matter.

The key outside markets today find the U.S. dollar index trading slightly lower but still not far below this month’s 1.5-year high. Meantime, Nymex crude oil futures prices are slightly higher on a corrective bounce after hitting an 11-month low of $54.75 last week.

U.S. economic data due for release Monday is light and includes quarterly retail e-commerce sales and the NAHB housing market index.

Technically, gold bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the November high of $1,239.30. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,184.30. First resistance is seen at last week’s high of $1,226.00 and then at $1,230.00. First support is seen at Friday’s low of $1,213.70 and then at $1,207.10. Wyckoff’s Market Rating: 3.5

December silver futures bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $14.50 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 Friday’s low of $14.215 and then at $14.00. Wyckoff’s Market Rating: 2.0.

By Jim Wyckoff
For Kitco News


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