(Kitco News) - Gold and silver prices down and hit new for-the-move lows in early U.S. trading—gold a nearly 1.5-year low and silver a two-year low. A powerful rally in the U.S. dollar index remains the major bearish element punishing the precious metals markets. The USDX hit a 14-month high overnight. December gold futures were last down $7.00 an ounce at $1,193.70. September Comex silver was last down $0.233 at $14.82 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are also pointed toward weaker openings when the New York day session begins.

U.S.-Turkey relations have further deteriorated as Turkey has slapped economic sanctions on the U.S. The Turkish lira has stabilized at mid-week, but other secondary currencies are still wobbly and traders/investors worldwide are still jittery that a secondary currency contagion could develop as the U.S. dollar continues to appreciate against most world currencies. Gold and silver bulls remain stymied their safe-haven metals can’t get a bid due to the risk aversion in the world marketplace at present.

The economic highlight of the day for the U.S. is retail sales data for July, which is expected to come in at up just 0.1%.

The other key outside market today finds Nymex crude oil prices lower and trading just above $66.00 a barrel. Oil prices are near this week’s six-week low and are trending lower.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, retail sales, industrial production and capacity utilization, preliminary productivity and costs, the Empire State manufacturing survey, manufacturing and trade inventories, the NAHB housing market index, Treasury international capital data, 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 $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,150.00. First resistance is seen at $1,200.00 and then at Tuesday’s high of $1,205.80. First support is seen at today’s low of $1,190.50 and then at $1,185.00. 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 $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at $15.00 and then at Tuesday’s high of $15.105. Next support is seen at today’s low of $14.765 and then at $14.50. Wyckoff's Market Rating: 1.0.

By Jim Wyckoff

For Kitco News

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jwyckoff@kitco.com

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