by Jim Wyckoff, SeniorAnalyst TraderPlanet.com

DECEMBER GOLD

December gold futures closed up $1.10 at $887.20 yesterday. Prices closed near mid-range yesterday on short covering in a bear market. Serious near-term chart damage has been inflicted recently. Bearish “outside markets”–lower crude oil and a stronger U.S. dollar–limited the upside in gold again yesterday. Prices are in a steep three-week-old downtrend on the daily bar chart. Bears’ next downside price objective is closing prices below solid technical support at the June low of $869.00. Gold bulls’ next upside price objective is to produce a close above solid technical resistance at $900.00. First resistance is seen at yesterday’s high of $894.60 and then at $900.00. Support is seen at yesterday’s low of $880.50 and then at $875.00.

Wyckoff’s Market Rating: 3.0

DECEMBER SILVER

December silver futures closed up 0.7 cents at $16.72 an ounce yesterday. Prices closed near mid-range. Bears still have downside technical momentum. A steep three-week-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price objective for the bears is closing prices below solid technical support at the May low of $16.28. First resistance is seen at yesterday’s high of $16.90 and then at $17.00. Next support is seen at this week’s low of $16.625 and then at the June low of $16.54.

Wyckoff’s Market Rating: 3.0

DECEMBER NY COPPER

December N.Y. copper closed up 105 points at 341.75 cents yesterday. Prices closed nearer the session low yesterday. Short covering in a bear market was featured yesterday. Bearish “outside markets”–lower crudeoil pricesand a stronger U.S. dollar–limited the upside in copper again yesterday. Bears still have the solid near-term technical advantage. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of 338.40 cents. Bulls’ next upside objective is pushing and closing prices above solid technical resistance at 350.00 cents. First support is seen at yesterday’s low of 340.65 cents and then at 338.40 cents. First resistance is seen at yesterday’s high of 346.40 cents and then at 350.00 cents.

Wyckoff’s Market Rating: 3.0