Gold, Silver Prices Near Steady On Conflicting "Outside Market" Forces
(Kitco News) - Gold and silver prices recouped mild early losses to trade around unchanged levels on the day, in early-afternoon dealings Tuesday. Gold hit another four-week low below $1,200.00 overnight. The silver market fell to a two-month low today. Precious metals were somewhat supported when the U.S. dollar index sold off today, on a corrective pullback after hitting a 1.5-year high on Monday. However, the steep sell off in crude oil recently is a bearish outside market working against the metals. December gold futures were last down $0.90 an ounce at $1,202.60. December Comex silver was last down $0.011 at $14.00 an ounce.
Nymex crude oil futures prices are sharply lower today, hit an eight-month low overnight and are trading around $57.50 a barrel. The steep slide in oil prices is a bearish development for most of the raw commodity sector, as oil is arguably the leader of that sector.
European investors are unsettled early this week as Tuesday is the day Italy’s budget is supposed to fall into line with the constricts of the European Union budget process. Meantime, reports said U.K. Prime Minister Theresa May has rejected the latest European Union Brexit proposal. The Euro currency fell to a 16-month low against the U.S. dollar on Monday.
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 $1,225.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,184.30. First resistance is seen at this week’s high of $1,212.00 and then at $1,220.00. First support is seen at today’s low of $1,196.60 and then at $1,190.00. Wyckoff's Market Rating: 2.5
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 $13.50. First resistance is seen at this week’s high of $14.18 and then at last Friday’s high of $14.425. Next support is seen at today’s low of $13.92 and then at $13.75. Wyckoff's Market Rating: 1.5.
December N.Y. copper closed up 165 points at 269.30 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 274.85 cents and then at 278.00 cents. First support is seen at today’s low of 266.25 cents and then at the November low of 264.25 cents. Wyckoff's Market Rating: 3.0.