Metals Commentary

December gold futures closed up $9.90 an ounce at $1,651.50 yesterday. Prices closed near the session high yesterday. The key "outside markets" were bullish for gold again yesterday, as the U.S. dollar index was lower and crude oil prices were solidly higher. Trading has been choppy in the gold market recently. Gold market bears still have the slight near-term technical advantage. A bearish pennant pattern has formed on the daily bar chart. Prices are also still in a four-week-old downtrend on the daily bar chart. Bulls' next upside technical objective is to produce a close above solid technical resistance at $1,705.40. Bears' next near-term downside price objective is closing prices below strong technical support at the September low of $1,535.00. First resistance is seen at yesterday's high of $1,656.80 and then at this week's high of $1,681.50. First support is seen at yesterday's low of $1,633.20 and then at $1,625.00.

Wyckoff's Market Rating: 4.5.

December silver futures closed up $1.523 an ounce at $31.875 yesterday. Prices closed near the session high again yesterday. The key "outside markets" were bullish for silver yesterday, as the U.S. dollar index was lower and crude oil prices were solidly higher. Silver prices are still in a six-week-old downtrend on the daily bar chart. A bearish pennant pattern has also formed on the daily bar chart for silver. Silver bulls' next upside price objective is producing a close above strong technical resistance at last week's high of $33.585 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the September low of $26.15. First resistance is seen at yesterday's high of $32.07 and then at $32.50. Next support is seen at $31.50 and then at $31.00.

Wyckoff's Market Rating: 4.5.

December N.Y. copper closed up 1,515 points 325.75 cents yesterday. Prices closed near the session high again yesterday and saw more short covering in a bear market. The key "outside markets" were again
bullish for copper yesterday, as the U.S. dollar index was lower and crude oil prices were solid higher. Still, serious near-term chart damage has occurred in copper recently. Copper bears still have the overall near-term technical advantage as a two- month-old downtrend is in place on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technicalresistance at 350.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at yesterday's high of 327.20 cents and then at 330.00 cents. First support is seen at 322.500 cents and then at 320.00 cents.

Wyckoff's Market Rating: 2.5.