Gold, Silver Pressured By Strong Dollar, Weak Oil
Tuesday October 11, 2016 13:42
(Kitco News) - Gold and silver futures prices ended the U.S. day session modestly lower Tuesday. The key “outside markets” were in a bearish daily posture for the precious metals, as the U.S. dollar index was solidly higher and crude oil prices were lower. December Comex gold was last down $4.30 an ounce at $1,256.10. December Comex silver was last down $0.164 at $17.495 an ounce.
A feature in the marketplace Tuesday was the stronger U.S. dollar. The U.S. dollar index hit a 2.5-month high following more hawkish Fed-speak from a Federal Reserve official on Monday. Chicago Fed president Charles Evans suggested a U.S. interest rate increase can occur this year. There is also thinking in the marketplace that U.S. presidential candidate Donald Trump is falling farther behind Hillary Clinton, which traders and investors reckon would allow the Fed to raise U.S. interest rates sooner due to less uncertainty if Clinton wins the election.
Crude oil prices were weaker Tuesday, following an International Energy Agency report that said world crude oil supplies rose by 600,000 barrels a day in September from August. Still, the crude oil bulls have seen success recently as prices are near a three-month high in the Nymex futures. Russia this week has hinted it will participate in an OPEC plan to cut crude oil production levels among cartel members.
Asian markets are back in full swing after a week-long holiday in China last week and a holiday in Japan on Monday.
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Technically, December gold futures prices closed nearer the session low today. Serious near-term technical damage has been inflicted in gold recently. A bearish pennant pattern has formed on the daily bar chart. The gold bears have the overall near-term technical advantage. Prices have been trending lower for three months. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,280.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at today’s high of $1,264.00 and then at $1,271.60. First support is seen at $1,250.00 and then at last week’s low of $1,243.20. Wyckoff’s Market Rating: 3.5
December silver futures prices closed near the session low today. The silver market bears have the overall near-term technical advantage. Prices have been trending lower for three months. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.46 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today’s high of $17.855 and then at $18.04. Next support is seen at $17.25 and then at last week’s low of $17.115. Wyckoff's Market Rating: 3.5.
December N.Y. copper closed down 140 points at 218.30 cents today. Prices closed near mid-range today. The key “outside markets” were bearish for copper today as the U.S. dollar index was sharply higher and crude oil prices were lower. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the September high of 221.90 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 210.00 cents. First resistance is seen at this week’s high of 220.25 cents and then at 221.90 cents. First support is seen at this week’s low of $2.1645 and then at last week’s low of 214.55 cents. Wyckoff's Market Rating: 5.5.
ort is seen at the overnight low of $17.475 and then at last week’s low of $17.115. Wyckoff's Market Rating: 3.5.
By Jim Wyckoff, contributing to Kitco News; email@example.com