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Gold Down, Hits 3-Week Low, On Strong Greenback, Rallying Stock Markets

(Kitco News) - Gold prices ended the U.S. day session lower and hit a three-week low Wednesday. The yellow metal was weighed down by a rallying U.S. dollar index this week and by the better risk appetite seen in the world marketplace the past couple weeks. August Comex gold was last down $13.60 an ounce at $1,318.70. September Comex silver was last down $0.397 at $19.61 an ounce.

Global stock markets were mostly firmer Wednesday, as traders and investors look ahead to Thursday’s meeting of the European Central Bank. The ECB is not expected to announce new monetary policy stimulus measures at this week’s meeting. However, it’s expected that ECB President Mario Draghi will lay out plans for future stimulus coming from the ECB. World stock markets have been buoyed this summer on ideas the major central banks of the world will continue their very easy money policies—especially after the Brexit vote in late June.

The key “outside markets” on Wednesday saw the U.S. dollar index slightly higher and hitting a four-month high. Nymex crude oil prices were also higher and hovering just above $45.00 a barrel.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed nearer the session low, hit a three-week low and scored a bearish “outside day” down on the daily bar chart today. The gold bulls still have the overall near-term technical advantage, but are fading. Prices have been trending lower for two weeks. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at $1,325.00 and then at $1,330.00. First support is seen at today’s low of $1,313.30 and then at $1,310.00. Wyckoff’s Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed nearer the session low today. The silver market bulls still have the overall near-term technical advantage but are now fading. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $21.22 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $20.00 and then at this week’s high of $20.295. Next support is seen at today’s low of $19.44 and then at $19.28. Wyckoff's Market Rating: 6.5.

September N.Y. copper closed down 100 points at 225.30 cents today. Prices closed nearer the session high today on profit taking after closing at a 2.5-month high close on Tuesday. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the March high of 232.95 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the July low of 211.65 cents. First resistance is seen at today’s high of 2.2685 and then at the July high of 227.75 cents. First support is seen at today’s low of 222.10 cents and then at 220.00 cents. Wyckoff's Market Rating: 6.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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