Gold, Silver Prices Hit Multi-Week Lows Amid Strong Greenback
(Kitco News) - Gold and silver prices are moderately down and have hit four-week and eight-week lows, respectively, in early-afternoon U.S. trading Monday. The precious metals are pressured by a very strong U.S. dollar on the foreign exchange market. The U.S. dollar index hit a 16-month high today. December gold futures were last down $5.30 an ounce at $1,203.30. December Comex silver was last down $0.13 at $14.01 an ounce.
A solid sell off in the U.S. stock market today did not help out the precious metals bulls. However, if that selling pressure extends into Tuesday, look for some safe-haven demand to support gold and silver prices.
The U.S. government was closed today for the Veterans Day holiday, which made for some quieter trading conditions.
The other key “outside market” today saw Nymex crude oil futures prices firmer and trading just below $61.00 a barrel after hitting a seven-month low last Friday. Reports today say Saudi Arabia and Russia will cut their oil exports and prod the OPEC oil cartel to lower its collective crude oil production, in the wake of the recent steep downdraft in oil prices.
Technically, 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 in December futures above solid technical resistance at last week’s high of $1,238.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,212.00 and then at $1,220.00. First support is seen at $1,200.00 and then at $1,190.00. Wyckoff's Market Rating: 3.0
The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing December futures prices above solid technical resistance at last week’s high of $14.775 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at today’s high of $14.18 and then at Friday’s high of $14.425. Next support is seen at $13.965 and then at $13.75. Wyckoff's Market Rating: 1.5.
December N.Y. copper closed down 55 points at 267.90 cents today. Prices closed nearer the session low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 287.10 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 270.00 cents and then at 273.15 cents. First support is seen at the November low of 264.25 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.5.