Gold, Silver Hit 12-Mo. Lows On Bearish Outside Markets, Charts
(Kitco News) - Gold and silver prices are down and have hit new 12-month lows in early U.S. trading Thursday. A resurgent U.S. dollar index this week, which hit a 12-month high overnight, and slumping crude oil prices are bearish outside market elements for the precious metals markets. The technical postures for gold and silver are also fully bearish, which is inviting the chart-based sellers. August gold futures were last down $12.30 an ounce at $1,215.70. September Comex silver was down $0.284 at $15.29 an ounce.
While there are no significant early chart clues gold and silver prices are near bottoms, they are presently short-term oversold, technically, and due for a corrective bounce very soon.
World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins, on some mild profit taking after scoring multi-month or contracts highs this week.
The U.S. hard line against its trading partners is back on the front burner of the marketplace and is pressuring world equity markets Thursday. President Trump has again threatened the European Union with tariffs on its automobiles. The Chinese yuan declined to a 12-month low against the U.S. dollar today amid expectations that Chinese monetary officials will continue to let the yuan depreciate, including by easing China’s monetary policy.
The key “outside markets” today find Nymex crude oil prices lower and trading just above $68.00 a barrel. Recent solid losses in crude suggest this market has topped out. Meantime, the U.S. dollar index is higher again today, boosted in part by very upbeat comments on the U.S. economy this week from Federal Reserve Chairman Jerome Powell.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, and leading economic indicators.
Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in August futures above solid resistance at this week’s high of $1,245.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at $1,225.00 and then at Wednesday’s high of $1,229.10. First support is seen at $1,210.00 and then at $1,200.00. Wyckoff's Market Rating: 1.0
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 this week’s high of $15.90 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 $15.50 and then at Wednesday’s high of $15.625. Next support is seen at $15.20 and then at $15.00. Wyckoff's Market Rating: 1.0.