Gold, Silver Hit Multi-Month Lows Amid Lack of Bullish News

(Kitco News) - Gold and silver prices aretrading moderately lower in early-afternoon U.S. dealings Thursday. Gold hit a nearly12-month low today and silver notched a seven-month low. Gold and silver bullsneed a good dose of bullish fundamental news, which has been absent from themarketplace in recent weeks. Chart-based sellers in the futures markets havebeen emboldened this week, amid price downtrends in place for gold and silver.However, both markets are now technically oversold on a short-term basis anddue for decent rebounds very soon. Also, the big rally in crude oil pricesrecently suggests the raw commodity sector has bottomed out and will see betterdays just ahead. Many raw commodity prices at present are being viewed asvalue-buying opportunities, on a longer-term basis, including the preciousmetals. That’s my bias, too. Augustgold futures were last down $4.90 an ounceat $1,251.20. July Comex silver was last down $0.191 at $15.955 an ounce.

Worldstock markets were mostly weaker overnight. U.S. stock indexes are slightly firmerin afternoon New York trading. Global trade war fears continue to somewhatlimit buying interest in world equity markets, but are not producing enoughfear to prompt demand for safe-haven gold and silver.

Inovernight news, the Indian Rupee currency hit a new all-time low against theU.S. dollar, in part due to the spike in oil prices the past week. The strongdollar against the Rupee is likely limiting Indian demand for gold (priced inU.S. dollars on the world market). India is a major gold consumer, second onlyto China.

TheU.S. data point of the week is today’s final estimate of first-quarter grossdomestic product, which is seen coming in at up 2.2%, year-on-year.

Thekey “outside markets” today find the U.S. dollar index slightly lower afterhitting a 12-month high overnight. Meantime, Nymex crude oil prices are higherand hit a 3.5-year high of $74.03 a barrel today.

Technically,gold bears have the solid overall near-term technical advantage. A2.5-month-old downtrend is in place on the daily bar chart. However, the marketis now well short-term oversold and due for a corrective bounce very soon. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical resistance at $1,286.80. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at$1,230.00. First resistance is seen at Wednesday’s high of $1,261.90 and thenat Tuesday’s high of $1,269.40. First support is seen at today’s low of$1,249.60 and then at $1,245.00. Wyckoff's Market Rating: 2.5

Thesilver bears have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $16.75 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Decemberlow of $15.805. First resistance is seen at today’s high of $16.095 and then at$16.295. Next support is seen at today’s low of $15.88 and then at $15.805.Wyckoff's Market Rating: 2.5.

JulyN.Y. copper closed down 310 points at 295.35 cents today. Prices closed nearmid-range and hit an 11-month low today. The copper bears have the firm overallnear-term technical advantage. Copper bulls' next upside price objective ispushing and closing prices above solid technical resistance at 310.00 cents. Thenext downside price objective for the bears is closing prices below solidtechnical support at 285.00 cents. First resistance is seen at today’s high of298.10 cents and then at 300.00 cents. First support is seen at today’s low of293.00 cents and then at 290.00 cents. Wyckoff's Market Rating: 2.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com 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.

Monetary-driven precious metals outperform major base metals

Gold stocks hit by plunging equities markets

Gold stocks down as metal and equities momentum fades

Another Kazatomprom guidance announcement shakes uranium price

Major monetary drivers still supporting gold