Gold, Silver Prices Down, But Off Daily Lows On Surging Oil
(Kitco News) - Gold and silver prices are weaker in early-afternoon U.S. trading Tuesday. However, prices have moved well up from their daily lows that saw gold hit a six-month low and silver hit a seven-week low. A surge in Nymex crude oil prices above $70.00 did helped to lift gold and silver markets up from their session lows just before midday. August gold futures were last down $6.90 an ounce at $1,262.00. July Comex silver was last down $0.053 at $16.275 an ounce.
Despite the threat of a major world trade war on the horizon, the marketplace is not seeing keen risk aversion—at least not enough to boost the safe-haven metals. Instead, gold and silver are following their raw commodity counterparts lower on worries of less world trade in raw commodities if a full blown trade war breaks out between the U.S. and the other major economies of the world.
The key “outside markets” today find the U.S. dollar index higher, which is a bearish daily market element for the precious metals.
Meantime, Nymex crude oil prices are sharply higher and trading above $70.00 a barrel after late-morning reports surfaced that the U.S. will impose a “zero tolerance” policy on Iranian oil exports to other countries.
Technically, the gold bears have the firm overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,286.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the December low of $1,251.90. First resistance is seen at today’s high of $1,269.40 and then at this week’s high of $1,274.40. First support is seen at today’s low of $1,256.40 and then at $1,251.90. Wyckoff's Market Rating: 3.0
The silver bears have the firm overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $16.07. First resistance is seen at today’s high of $16.35 and then at $16.50. Next support is seen at today’s low of $16.14 and then at $16.07. Wyckoff's Market Rating: 3.0.
July N.Y. copper closed up 60 points at 299.25 cents today. Prices closed nearer the session high on tepid short covering after hitting a three-month low on Monday. The copper bears have the overall near-term technical advantage amid the recent steep sell off. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 315.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 295.85 cents. First resistance is seen at 300.00 cents and then at this week’s high of 304.50 cents. First support is seen at this week’s low of 298.60 cents and then at 295.85 cents. Wyckoff's Market Rating: 3.0.