Gold, Silver Weaker As U.S. Dollar Index Gains; Little Reaction To FOMC

(Kitco News) - Gold andsilver prices arejust modestly lower in early-afternoon U.S. trading Thursday. A rebound in theU.S. dollar index today, following selling pressure this week, worked againstthe precious metals market bulls. The metals markets showed no significantreactions to the just-released FOMC minutes that show no change in U.S.monetary policy. December gold futures were last down $2.50 an ounce at$1,226.30. December Comex silver was last down $0.129 at $14.43 an ounce.

Focustoday was on the conclusion of the Federal Reserve’s Open Market Committee(FOMC) meeting that began Wednesday morning and ended with a statement thisafternoon. No change in U.S. interest rates is expected. The FOMC statementsaid to expect more incremental rate hikes coming down the road. Fed ChairmanJay Powell’s will not hold a press conference this afternoon.

Riskappetite in the world marketplace is mostly upbeat following the U.S. mid-termelections that produced a divided Congress.

Inovernight news, upbeat economic data out of China defied expectations that itstrade war with the U.S. is crimping its economy. China’s exports in Octoberrose by 15.6%, year-on-year. That handily beat expectations of an 11% increase.Imports in October were up 21.4%, year-on-year. Imports from the U.S. dropped1.8%. This data suggests China could be in no hurry to settle its trade disputewith the U.S. However, as has been the case for years, some do question theveracity of China’s economic numbers.

Theother key “outside market” today finds Nymex crude oil prices lower, hitting aseven-month low and trading just below $62.00 a barrel. The severelydown-trending crude oil market is a bearish element for the raw commoditysector, including the metals markets.

Technically,the gold bulls and bears are on a level overall near-term technical playingfield. Gold bulls' next upside near-term price breakout objective is to producea close above solid technical resistance at the October high of $1,246.00.Bears' next near-term downside price breakout objective is pushing Decemberfutures prices below solid technical support at last week’s low of $1,213.40.First resistance is seen at $1,230.00 and then at this week’s high of$1,238.40. First support is seen at today’s low of $1,220.80 and then at$1,213.40. Wyckoff's Market Rating: 5.0

Thesilver bears have the overall near-term technical advantage, but recent priceaction suggests a market low was put in place in September. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at $15.00 an ounce. The next downside price breakout objective for thebears is closing prices below solid support at the September low of $13.965.First resistance is seen at this week’s high of $14.775 and then at the Octoberhigh of $14.95. Next support is seen at last week’s low of $14.24 and then at$14.00. Wyckoff's Market Rating: 2.5.

DecemberN.Y. copper closed down 220 points at 273.25 cents today. Prices closed nearerthe session high. The copper bears have the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the September high of 287.10 cents.The next downside price objective for the bears is closing prices below solidtechnical support at the August low of 257.45 cents. First resistance is seenat Wednesday’s high of 277.30 cents and then at 280.00 cents. First support isseen at today’s low of 270.30 cents and then at 267.00 cents. Wyckoff's MarketRating: 3.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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