Gold, Silver Hit 12-Mo. Lows As USDX Boosted By Upbeat Powell Remarks
(Kitco News) - Gold and silver prices are solidly lower and notched new 12-month lows in early-afternoon U.S. trading Tuesday. The precious metals dropped in conjunction with comments from Federal Reserve Chairman Jerome Powell today that suggested the U.S. economy is strong and inflation is tame. Powell’s remarks lifted the U.S. dollar index to its daily high. August gold futures were last down $13.00 an ounce at $1,226.70. September Comex silver was down $0.207 at $15.61 an ounce.
Powell testified before the Senate Banking Committee on U.S. monetary policy. As expected the Fed chairman gave an upbeat assessment of the U.S. economy and inflation, which traders extrapolated to mean the Fed will likely remain on a path of gradually raising interest rates. Powell said the U.S. trade disputes are hard to gauge regarding impact on the U.S. economy. The U.S. dollar was boosted by Powell’s remarks, as was the U.S. stock market. U.S. Treasury yields rose during his testimony. Safe-haven gold and silver prices are again deflated by upbeat trader and investor attitudes in the world marketplace.
The other key “outside market” today finds Nymex crude oil prices weaker and trading just below $68.00 a barrel. Recent solid losses in crude begin to suggest this market has topped out. World oil production is back on the rise after some recent outages from producing countries. A down-trending oil market is also a negative for the raw commodity sector, including the metals.
(NOTE: Follow me on Twitter: @jimwyckoff)
Technically, the gold bears have the solid overall near-term technical advantage. There are no early clues to suggest a market bottom is close at hand. A three-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 the July high of $1,266.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at $1,236.20 and then at this week’s high of $1,245.80. First support is seen at today’s low of $1,225.90 and then at $1,220.00. Wyckoff's Market Rating: 1.5
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 the July high of $16.26 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at $15.75 and then at this week’s high of $15.90. Next support is seen at today’s low of $15.56 and then at $15.25. Wyckoff's Market Rating: 1.5.
September N.Y. copper closed down 170 points at 274.75 cents today. Prices closed near the session 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 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at 280.00 cents and then at 283.05 cents. First support is seen at the July low of at 271.70 cents and then at 270.00 cents. Wyckoff's Market Rating: 1.5.