Gold, Silver Prices Weaker On Bearish Outside Markets
(Kitco News) - Gold and silver prices are modestly lower in early U.S. dealings Wednesday. The key “outside markets” are in a bearish daily posture for the precious metals, as Nymex crude oil prices are solidly lower and trading around $68.00 a barrel. The U.S. dollar index is higher today and not far below its recent 12-month high. December gold futures were last down $2.60 an ounce at $1,215.70. September Comex silver was last down $0.058 at $15.315 an ounce.
Amid a lack of fresh metals-market-moving news recently, the path of least resistance for prices remains sideways to lower because the near-term technical postures for gold and silver remain fully bearish.
Global stock markets were mostly lower overnight, on fresh jitters as the U.S. prepares to slap more trade sanctions on China—now totaling $50 billion. U.S. stock indexes are pointed toward mixed openings when the New York day session begins.
In overnight news, China’s imports rose 23.7% in July, year-on-year. Imports were up 14.1% in June. China’s exports rose 12.2% in July, following an 11.3% increase in June. The July surge in imports was attributed to China stocking up on some goods to prepare for a protracted trade war with the U.S.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
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 December futures above solid resistance at $1,244.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,226.00 and then at $1,230.00. First support is seen at last week’s low of $1,212.50 and then at $1,200.00. 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 $15.75 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 this week’s high of $15.505 and then at last week’s high of $15.635. Next support is seen at last week’s low of $15.25 and then at the July low of $15.185. Wyckoff's Market Rating: 1.5.