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Gold, Silver Prices Weaker Amid Scant Risk Aversion

Kitco News

(Kitco News) - Gold and silver prices are mildly lower in early U.S. trading Tuesday. Low risk aversion in the world marketplace continues to hamper the safe-haven metals. Also, the lack of fresh, major fundamental news is emboldening the chart-based sellers, most of whom are bearish at present. December gold futures were last down $2.70 an ounce at $1,228.80. September Comex silver was last down $0.042 at $15.495 an ounce.

World stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. It will be a busy day for U.S. economic data.

In focus this week is central bank meetings of the U.S., the Bank of Japan and the Bank of England. The BOJ today left its interest rates unchanged, as expected, but did surprise the marketplace by reiterating it will maintain its ultra-low interest rates and easy monetary policy. Only the BOE is expected to make any policy move—raising its interest rates slightly. The FOMC meeting of the Federal Reserve begins Tuesday morning and ends Wednesday afternoon with a statement.

In overnight news, the Euro zone collective gross domestic product was reported at up 1.4% in the second quarter, year-on-year. That’s down 0.1% from the first quarter and stands in stark contrast to the latest U.S. GDP report that showed annual growth above 4.0% in the second quarter. The Euro zone’s consumer price index in July was reported up 2.1%, year-on-year, which was slightly higher than expected.

The key “outside markets” today find Nymex crude oil prices weaker and trading just below $70.00 a barrel. The U.S. dollar index is slightly weaker early today.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, personal income and outlays, the employment cost index, the S&P/Case-Shiller home price index, the ISM Chicago business survey, and the consumer confidence index.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at Monday’s high of $1,234.10 and then at last week’s high of $1,244.70. First support is seen at $1,225.00 and then at the July low of $1,221.00. Wyckoff's Market Rating: 1.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 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 last week’s high of $15.70 and then at $15.90. Next support is seen at last week’s low of $15.34 and then at the July low of $15.185. Wyckoff's Market Rating: 1.5.

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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