Gold, Silver Prices Slip Amid Steep Drop In Crude Oil
(Kitco News) - Gold and silver prices were modestly lower in early-afternoon U.S. trading Monday. Both markets are hovering near their 12-month lows set last week. Scant risk aversion in the marketplace the past several weeks has most traders and investors avoiding the safe-haven metals. August gold futures were last down $1.80 an ounce at $1,239.40. September Comex silver was down $0.005 at $15.81 an ounce.
A sharp drop in Nymex crude oil prices today to below $68.00 per barrel for a time worked to put more pressure on the precious metals markets and the raw commodity sector in general. There are now early clues that the crude oil market has put in at least a near-term top, if not a major top. Such would be a generally bearish element for much of the raw commodity sector. Gold and silver prices have preferred to follow their raw commodity counterparts recently.
The other key “outside market” today finds the U.S. dollar index weaker on a corrective pullback from recent gains.
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Technically, 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 the July high of $1,266.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,245.80 and then at $1,250.00. First support is seen at last week’s low of $1,236.20 and then at $1,230.00. Wyckoff's Market Rating: 2.0
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 the July high of $16.26 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 $16.00 and then at $16.11. Next support is seen at last week’s low of $15.70 and then at $15.55. Wyckoff's Market Rating: 2.0.
September N.Y. copper closed down 95 points at 276.60 cents today. Prices closed near mid-range 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 283.05 cents. First support is seen today’s low of at 274.45 cents and then at last week’s low of 271.70 cents. Wyckoff's Market Rating: 1.5.