Gold, silver hammered to 3-mo. lows by bullish equities, low risk aversion
(Kitco News) - Safe-haven gold and silver prices are sharply down and have slumped to three-month lows in midday trading Thursday. The precious metals bulls continue to be hamstrung by rallying world stock markets that saw the U.S. indexes score record highs again today. Some chart-based sellers also stepped into the futures markets on the sell side today, as serious near-term technical damage has now been inflicted in gold And silver markets. December gold futures were last down $28.30 an ounce at 1,464.80. December Comex silver prices were last down $0.0578 at $17.025 an ounce.
Asian and European stock indexes were also mostly up Thursday. Trader and investor risk appetite remains elevated as the news from the U.S.-China trade front remains very upbeat. Reports from China Thursday said both countries have agreed to remove their tariffs in tranches. The report said tariffs would be eliminated once the “Phase 1” partial trade deal is signed. There has been no official word from the U.S. on this development. While it is a positive, the trade deal still has to be signed. And remember, the trade negotiations between the world’s two largest economies have been a continuously up-and-down affair regarding progress. Given this history it seems unlikely both nations will now just cruise to the finish line with a trade deal.
The Chinese yuan continued to strengthen against the U.S. dollar on the trade-deal optimism.
The Bank of England held its regular monetary policy meeting Thursday, but no change in interest rates occurred, as expected.
The gold and silver market bulls are in need of a geopolitical jolt, which will occur at some point in the future but nobody knows when.
The key “outside markets” today see the U.S. dollar index higher, which is also a negative for the metals markets. Nymex crude oil prices are higher and trading around $57.50 a barrel.
December gold futures prices were near the session low at midday. The bulls have lost their overall near-term technical advantage amid as prices have been trending lower for two months. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,425.00. First resistance is seen at $1,475.00 and then at $1,480.00. First support is seen at today’s low of $1,462.20 and then at $1,450.00. Wyckoff's Market Rating: 5.0
December silver futures prices closed nearer the session low at midday. The silver bulls have lost their overall near-term technical advantage. Prices have been trending lower for two months. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.25 and then at $17.50. Next support is seen at today’s low of $16.91 and then at $16.75. Wyckoff's Market Rating: 5.0.
December N.Y. copper closed up 495 points at 271.50 cents today. Prices closed near the session high and hit a 13-week high today. The copper bulls have the overall near-term technical advantage as prices have been trending up for five weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 280.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at 273.00 cents and then at 275.00 cents. First support is seen at 270.00 cents and then at today’s low of 266.55 cents. Wyckoff's Market Rating: 6.0.