Gold Prices Drop To 1-Mo.Low As Greenback Surges Today
(Kitco News) - Gold and silver prices are down in early-afternoon U.S. trading Wednesday. Gold futures prices dropped to a four-week low today. The metals saw pressure from a stronger U.S. dollar index today. Risk aversion remains very low in the world marketplace at present, which continues to squelch buying interest in the safe-haven metals. December gold futures were last down $11.60 an ounce at $1,187.60. December Comex silver was last down $0.116 at $14.285 an ounce.
U.S. stock indexes were posting solid gains today and are near contract and record highs, to attest to the “risk-on” trader and investor attitudes in the marketplace.
China-U.S. relations continue to sour, as Trump on Wednesday accused China of meddling in the upcoming U.S. elections. However, this matter has not yet had a significantly bullish impact on the safe-haven metals.
Focus in Europe is also on the new Italian government’s economic plans to address its fiscal and financial problems, which are required by European Union law. Many believe Italian lawmakers won’t comply with EU rules on the matter. The Euro currency was pressured today on reports Italy will delay its fiscal and economic projections. If the matter deteriorates, gold and silver could benefit on some safe-haven demand.
The other key outside market today finds November Nymex crude oil prices higher and trading around $72.00 a barrel. Nymex crude oil prices trading near eight-month highs have had little to no bullish impact on the gold and silver markets.
Technically, gold prices saw a bearish downside “breakout” from the recent trading range, which now suggests a retest of the August lows. The gold bears have the firm overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,220.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at $1,200.00 and then at today’s high of $1,202.60. First support is seen at today’s low of $1,185.60 and then at $1,180.00. Wyckoff's Market Rating: 2.0
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 $15.07 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at today’s high of $15.48 and then at this week’s high of $14.595. Next support is seen at today’s low of $14.195 and then at last week’s low of $14.065. Wyckoff's Market Rating: 2.0.
December N.Y. copper closed down 435 points at 278.45 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage, but recent good gains suggest a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the 295.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at today’s high of 282.80 cents and then at 284.80 cents. First support is seen at today’s low of 276.35 cents and then at 275.00 cents. Wyckoff's Market Rating: 4.0.