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Price pressure on gold, silver amid bearish outside markets

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Tuesday. Amid a lack of major, fresh fundamental news in the marketplace today, traders are focused on the key outside markets that are in an overall bearish posture for the metals: a higher U.S. dollar index and down-trending crude oil prices. Rallying U.S. stock indexes that hit multi-month highs on Monday are also pulling away trader/investor interest in the long side of the precious metals markets. October gold futures were last down $7.20 at $1,780.60. September Comex silver futures were last down $0.202 at $20.07 an ounce.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward slightly weaker openings when the New York day session begins. Corporate earnings reports are in focus this week. Risk appetite in the marketplace this week is less than robust after some downbeat economic from China that prompted China’s central bank to ease its monetary policy. Also, a weaker U.S. Empire State manufacturing report on Monday has ratcheted up worries about an impending U.S. recession.

The key outside markets today see Nymex crude oil prices higher and trading around $90.25 a barrel. Reports said Iran may be taking steps in its nuclear program to ease international sanctions on Iranian oil. The U.S. dollar index is higher in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.802%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales indexes, new residential construction, and industrial production and capacity utilization.  

Live 24 hours gold chart [Kitco Inc.]

Technically, the October gold futures bears have the overall near-term technical advantage. A price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at the August high of $1,814.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,725.00. First resistance is seen at the overnight high of $1,787.60 and then at $1,800.00. First support is seen at $1,775.00 and then at the August low of $1,759.70. Wyckoff's Market Rating: 3.5.

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at the overnight high of $20.25 and then at $20.50. Next support is seen at $19.745 and then at $19.47. Wyckoff's Market Rating: 3.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.