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Gold, Silver Hit Hard By Sell-Off in Raw Commodity Sector

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(Kitco News) - Gold and silver prices are solidly lower and near their daily lows in early-afternoon U.S. trading Wednesday. The precious metals sold off in sympathy with a slumping raw commodity sector today, after the U.S. hit China with another volley of trade sanctions. A higher U.S. dollar index today also is a negative for the precious metals markets. August gold futures were last down $10.90 an ounce at $1,244.50. July Comex silver was last down $0.272 at $15.815 an ounce.

Important U.S. economic data out this week included the producer price index for June, which this morning came in at up 0.3% from May, which was hotter than the 2.0% rise that was forecast. The data did not have a significant impact on the precious metals or other markets. The June CPI report on Thursday is also seen up 0.2% from May.

World stock markets were rattled again today by the news the U.S. has targeted China with 10% tariffs on another $200 billion in Chinese product imports, and China again responded with another threat to retaliate. The U.S.-China trade war has at least temporarily cast a pall over world equity markets at mid-week. However, this market uncertainty has not produced any safe-haven demand for gold and silver, as those metals again chose to follow their raw commodity market counterparts lower today.

U.S. President Trump is in Europe today meeting with European leaders, with a meeting with Russian President Vladimir Putin later this week. The marketplace will watch Trump’s meetings closely, as the U.S. president has had harsh words for European leaders regarding trade and their lack of financial support for NATO.

The other key “outside market” today finds Nymex crude oil prices sharply lower and trading around $72.00 a barrel. Libyan oil exports are hitting the world market again, after being disrupted by political violence, and that’s putting some pressure on crude today.

(NOTE: Follow me on Twitter: @jimwyckoff)

Live 24 hours gold chart [Kitco Inc.]

Technically, gold prices are not far above last week’s 12-month-low. The gold bears have the solid overall near-term technical advantage. A three-month-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at $1,250.00 and then at today’s high of $1,257.30. First support is seen at last week’s low of $1,238.80 and then at $1,230.00. Wyckoff's Market Rating: 2.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $16.25 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.55. First resistance is seen at today’s high of $16.00 and then at $16.14. Next support is seen at last week’s low of $15.80 and then at $15.55. Wyckoff's Market Rating: 2.0.

September N.Y. copper closed down 935 points at 274.65 cents today. Prices closed nearer the session low and hit a 12-month low today. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at 280.00 cents and then at today’s high of 283.05 cents. First support is seen at today’s low of 271.70 cents and then at 270.00 cents. Wyckoff's Market Rating: 1.0.

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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