Gold, Silver Prices At 12-Mo. Lows On Resurgent U.S. Dollar, Slumping Oil
(Kitco News) - Gold and silver prices are down and have hit 12-month lows in early U.S. trading Wednesday. An appreciating U.S. dollar and down-trending crude oil prices are bearish “outside market” forces working against the precious metals markets today. August gold futures were last down $3.90 an ounce at $1,223.50. September Comex silver was down $0.167 at $15.45 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.
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.
In overnight news, the Euro zone consumer price index for June was reported up 0.1% from May and up 2.0%, year-on-year. Those numbers were right in line with market expectations.
The key “outside markets” today find Nymex crude oil prices lower and trading around $67.50 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 higher today and very close to its recent 12-month high.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential sales, the weekly DOE liquid energy stocks report and the Federal Reserve’s beige book. Fed Chairman Powell also speaks to the U.S. House of Representatives today on monetary policy.
Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. There are no early clues to suggest a market bottom is close at hand. Gold bulls' next upside near-term price breakout objective is to produce a close in August futures above solid 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 today’s high of $1,229.10 and then at $1,236.20. First support is seen at the overnight low of $1,220.90 and then at $1,210.00. Wyckoff's Market Rating: 1.5
September silver futures 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.