Gold, Silver Can't Withstand U.S. Dollar Strength

(Kitco News)- Gold and silver prices are solidly lower and trading near their daily lows in early-afternoonU.S. trading Monday. Gold hit a 12-month low and silver futures hit a seven-monthlow. A higher U.S. dollar index is a negative for the precious metals to startthe trading week. August gold futures were last down $10.00 an ounce at $1,244.40.September Comex silver was last down $0.303 at $15.895 an ounce.

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Worldstock markets were mostly lower Monday, including U.S. stock indexes. While worldtrade tensions remain high, which is causing some anxiety in the market place,the gold and silver markets would rather act like raw commodities thansafe-haven assets. Much of the raw commodity sector has been pressured inrecent weeks by worries the trade disputes among the major economies of theworld will curtail demand for many commodities.

U.S.President Trump is now focusing on auto imports into the U.S. for tariffs. Thealready-tense trade relations between the U.S. and the other major economies ofthe world appear to have ratcheted up another notch early this week.

Itcould be a quieter trading week this week, as Canadian markets are closed todayfor Canada Day and the U.S. Independence Day holiday is on Wednesday. However,some important U.S. economic data is out later this week, including the Fed’sFOMC minutes on Thursday and the jobs report on Friday.

Theother key “outside market” today finds Nymex crude oil prices are modestlylower and trading just below $74.00 a barrel. Gold and silver prices could beunder even more downside pressure if it were not for oil prices trading near3.5-year highs.

Technically,the 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 still short-term oversold and due for a good corrective bounce very soon.Gold bulls' next upside near-term price breakout objective is to produce aclose above solid technical resistance at $1,275.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technical supportat $1,230.00. First resistance is seen at $1,250.00 and the at today’s high of$1,255.60. First support is seen at $1,240.00 and then at $1,235.00. Wyckoff'sMarket Rating: 2.0

Thesilver bears have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $16.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $15.50. Firstresistance is seen at $16.00 and then at today’s high of $16.18. Next supportis seen at today’s low of $15.84 and then at $15.75. Wyckoff's Market Rating:2.0.

SeptemberN.Y. copper closed down 335 points at 293.25 cents today. Prices closed nearerthe session low and hit an 11-month low today. The copper bears have the solidoverall near-term technical advantage. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at310.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at 280.00 cents. First resistance is seen at295.00 cents and then at today’s high of 297.30 cents. First support is seen attoday’s low of 292.10 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.

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