Gold, Silver Prices Down On Technical Selling
(Kitco News) - Gold pricesaremoderately lower and hit another six-month low in early-afternoon U.S. tradingWednesday. Silver prices are slightly lower and hit a four-week low. Thenear-term technical postures for both metals have deteriorated the past week,which is inviting the chart-based sellers into the futures markets. August Comex gold futures were last down $4.00 an ounce at $1,274.60. July Comex silver was last down $0.008 at $16.315 an ounce.
Thesafe-haven gold market can’t hold a bid despite some risk aversion seen in themarketplace this week, due to worries about a global trade war. It seems thespecter of less global commerce in raw commodities if a trade war would breakout is trumping safe-haven buying. Gold bulls are frustrated because at presenttheir metal is acting like a raw commodity instead of a safe-haven asset.
Astrong U.S. dollar is also working against the precious metals markets. TheU.S. dollar index hit another 11-month high overnight. Since gold is priced inU.S. dollars on most world markets, any appreciation of the greenback makes themetal more expensive to purchase in non-U.S. currency.
Theother key “outside market” today finds Nymex crude oil prices firmer andtrading just above $65.00 a barrel. Oil traders are looking ahead to thelate-week OPEC meeting, at which time Saudi Arabia and Russia are expected toannounce they will increase oil production.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bears have the overall near-term technical advantage. A nine-week-olddowntrend is in place on the daily bar chart. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat $1,300.00. Bears' next near-term downside price breakout objective ispushing prices below solid technical support at the December low of $1,251.90.First resistance is seen at $1,280.00 and then at this week’s high of$1,286.80. First support is seen at today’s low of $1,272.10 and then at$1,265.00. Wyckoff's Market Rating: 3.5
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Thesilver bears have the overall near-term technical advantage. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at last week’s high of $17.35 an ounce. The next downside pricebreakout objective for the bears is closing prices below solid support at theMay low of $16.07. First resistance is seen at $16.50 and then at this week’shigh of $16.635. Next support is seen at this week’s low of $16.24 and then at$16.07. Wyckoff's Market Rating: 3.0.
JulyN.Y. copper closed down 120 points at 303.55 cents today. Prices closed nearerthe session low. The copper bears have the overall near-term technicaladvantage amid the steep sell off recently. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at320.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at the March low of 295.85 cents. Firstresistance is seen at today’s high of 306.75 cents and then at 310.00 cents.First support is seen at today’s low of 302.10 cents and then at 301.00 cents.Wyckoff's Market Rating: 3.0.
By Jim WyckoffFor Kitco News
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jwyckoff@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.