Gold & Silver Prices Pressured By Firmer USDX, Rally In US Stock Market

New York (Nov 6)  Gold and silver prices are moderately lower in early-afternoon U.S. trading Tuesday. A modest rebound in the U.S. dollar index today, as well as a rally in the U.S. stock market, put some downside pressure on the precious metals markets. Trading was choppy and two-sided as the world marketplace awaits the outcome of the U.S. mid-term elections. December gold futures were last down $5.10 an ounce at $1,227.20. December Comex silver was last down $0.107 at $14.54 an ounce.

Many believe today’s U.S. vote is a referendum on the performance of President Donald Trump. Big gains by the Democrats would likely be initially bearish for the U.S. stock market and would signal gridlock in Congress the next two years.

On Wednesday and Thursday the Federal Reserve’s Open Market Committee (FOMC) meets to discuss U.S. monetary policy, with a statement due Thursday afternoon. No change in interest rates is expected at this meeting.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close in December futures above solid 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 $1,200.00. First resistance is seen at last week’s high of $1,239.30 and then at $1,246.00. First support is seen at $1,225.00 and then at $1,220.00. Wyckoff's Market Rating: 5.0

December silver futures bears have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. 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 $14.95 and then at $15.00. Next support is seen at last week’s low of $14.24 and then at $14.00.

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