Gold, Silver Can't Withstand U.S. Dollar Strength
(Kitco News) - Gold and silver prices are solidly lower and trading near their daily lows in early-afternoon U.S. trading Monday. Gold hit a 12-month low and silver futures hit a seven-month low. A higher U.S. dollar index is a negative for the precious metals to start the trading week. August gold futures were last down $10.00 an ounce at $1,244.40. September Comex silver was last down $0.303 at $15.895 an ounce.
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World stock markets were mostly lower Monday, including U.S. stock indexes. While world trade tensions remain high, which is causing some anxiety in the market place, the gold and silver markets would rather act like raw commodities than safe-haven assets. Much of the raw commodity sector has been pressured in recent weeks by worries the trade disputes among the major economies of the world will curtail demand for many commodities.
U.S. President Trump is now focusing on auto imports into the U.S. for tariffs. The already-tense trade relations between the U.S. and the other major economies of the world appear to have ratcheted up another notch early this week.
It could be a quieter trading week this week, as Canadian markets are closed today for Canada Day and the U.S. Independence Day holiday is on Wednesday. However, some important U.S. economic data is out later this week, including the Fed’s FOMC minutes on Thursday and the jobs report on Friday.
The other key “outside market” today finds Nymex crude oil prices are modestly lower and trading just below $74.00 a barrel. Gold and silver prices could be under even more downside pressure if it were not for oil prices trading near 3.5-year highs.
Technically, the gold bears have the solid overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. However, the market is still short-term oversold and due for a good corrective bounce very soon. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at $1,250.00 and the at today’s high of $1,255.60. First support is seen at $1,240.00 and then at $1,235.00. Wyckoff's Market Rating: 2.0
The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.50. First resistance is seen at $16.00 and then at today’s high of $16.18. Next support is seen at today’s low of $15.84 and then at $15.75. Wyckoff's Market Rating: 2.0.
September N.Y. copper closed down 335 points at 293.25 cents today. Prices closed nearer the session low and hit an 11-month low today. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 310.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 280.00 cents. First resistance is seen at 295.00 cents and then at today’s high of 297.30 cents. First support is seen at today’s low of 292.10 cents and then at 290.00 cents. Wyckoff's Market Rating: 2.0.