Gold, Silver Hit 12-Mo. Lows Early, But Now Up From Daily Lows
(Kitco News) - Gold and silver prices are slightly down in early-afternoon trading Wednesday, but up from session lows that saw the metals hit 12-month lows earlier today. An appreciating U.S. dollar and down-trending crude oil prices are bearish “outside market” forces working against the precious metals markets this week. However, the USDX has lost most of its daily gains, while crude oil prices have erased early losses and are posting a slight advance at midday. August gold futures were last down $0.70 an ounce at $1,226.60. September Comex silver was down $0.082 at $15.535 an ounce.
Global trader and investor attitudes remain upbeat, which is supportive for equities but bearish for safe-haven gold and silver. Federal Reserve Chairman Jerome Powell gave a very upbeat assessment on the U.S. economy to a U.S. Senate panel on Tuesday, which helped to boost U.S. stock indexes to contract or multi-month highs.
The key outside markets today find Nymex crude oil prices firmer and trading just above $68.00 a barrel. Recent solid losses in crude suggest this market has topped out. Brent crude oil prices hit a three-month low today. Meantime, the U.S. dollar index is slightly higher today and not far below its recent 12-month high.
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Technically, the gold bears have the solid overall near-term technical advantage. There are no early clues to suggest a market bottom is close at hand. 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 $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at $1,236.20 and then at this week’s high of $1,245.80. First support is seen at today’s low of $1,220.90 and then at $1,210.00. Wyckoff's Market Rating: 1.5
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 $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at today’s high of $15.625 and then at $15.75. Next support is seen at today’s low of $15.41 and then at $15.25. Wyckoff's Market Rating: 1.5.
September N.Y. copper closed up 110 points at 275.75 cents today. Prices closed nearer the session high 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 290.00 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 at today’s low of at 271.55 cents and then at 270.00 cents. Wyckoff's Market Rating: 1.5.