Gold, Silver Prices Pressured By Bearish Outside Markets
(Kitco News) - Gold and silver prices are lower in early-afternoon U.S. dealings Tuesday. The metals are seeing pressure from a stronger U.S. dollar and declining crude oil prices. February gold futures were last down $9.80 an ounce at $1,218.90. March Comex silver was down $0.153 at $14.19 an ounce.
Gold and silver held modest gains heading into the U.S. futures markets openings. However, both metals started to fade when the U.S. dollar index moved to its daily high. The serious U.S.-China trade war is bearish for the metals markets, as China is a major importer of metals. This week’s meeting between U.S. President Trump and China’s President Jinping Xi in Argentina is not expected to produce a very positive outcome on the trade matter. Trump made more hardline comments on the matter Monday. There is general agreement that the trade war is hurting China’s economy much more than the U.S. economy. The U.S.-China trade war has also been supporting the U.S. dollar’s appreciation.
Nymex crude oil futures prices are lower today. Prices Monday hit a 13-month low of $50.10. Crude prices are down around 30% following the recent sharp declines. A key OPEC oil cartel meeting is scheduled for next week.
There is talk in the marketplace recently that the U.S. Federal Reserve may take a more dovish tone on its monetary policy due to notions the recent strong U.S. economic growth may be quickly decelerating. The Federal Open Market Committee meets to discuss monetary policy in late December. It’s widely expected the Fed will slightly raise its key Fed funds target range in December. However, a commentary in the Wall Street Journal today said Fed monetary policy will be “wide open” for 2019, which could lead to more uncertainty in the marketplace.
Technically, the gold bears have the overall near-term technical advantage and gained downside momentum today. Gold bulls' next upside near-term price breakout objective is to produce a close in February futures above solid technical resistance at the October high of $1,252.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at $1,225.00 and then at today’s high of $1,231.70. First support is seen at today’s low of $1,217.80 and then at $1,211.00. 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 March futures prices above solid technical resistance at the October high of $15.055 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.75. First resistance is seen at today’s high of $14.405 and then at last week’s high of $14.66. Next support is seen at $14.00 and then at the November low of $13.985. Wyckoff's Market Rating: 1.5.
March N.Y. copper closed down 420 points at 273.10 cents today. Prices closed near the session low and hit a two-week low today. 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 November high of 284.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 266.20 cents. First resistance is seen at today’s high of 276.95 cents and then at 280.00 cents. First support is seen at 272.50 cents and then at 270.00 cents. Wyckoff's Market Rating: 3.0.