Gold, Silver Get No Safe-Haven Bid From EM Currencies' Woes

(Kitco News)- Gold and silver prices are moderately lower in early-afternoon U.S. tradingThursday. While the safe-haven metals traders are closely watching developmentstoday in the emerging market currencies, so far they have not benefitted fromthe uncertainty of the matter. December gold futures were last down $6.10 anounce at $1,205.40. December Comex silver was last down $0.21 at $14.60 anounce.

Thefeature in the marketplace today is weakness in secondary market currenciesversus the U.S. dollar. The Argentine peso hit a record low against thegreenback and the Turkish lira is also under pressure today. The Brazilian realand Indian rupee are also solidly lower against the dollar. As the calendarturns to September next week, look for focus on secondary currencies and theircountries' problematic debt loads to become in keener focus among traders andinvestors. Any escalation in this situation would significantly spook themarketplace and likely prompt safe-haven demand for gold and silver.

Worldstock markets were mixed to lower overnight. U.S. stock indexes are pointedtoward weaker openings, on mild profit taking after hitting record highs onWednesday. The robust risk appetite in the marketplace this week has boostedworld equities markets. Reports say the U.S. and Canada are close to agreeingon a trade deal, after the U.S and Mexico reached a deal on Monday. Optimismthe U.S. will reach more trade agreements with its major trading partners hasin part lifted world stock markets this week.

Thekey outside markets today find the U.S. dollar index moderately up on acorrective bounce after seeing losses this week. Meantime, Nymex crude oilprices are up, hit a six-week high today, and trading just below $70.00 abarrel.

Technically,gold bears still have the overall near-term technical advantage but a pricedowntrend on the daily bar chart has been negated to suggest a market bottom isin place. Gold bulls' next upside near-term price breakout objective is toproduce a close in December futures above solid resistance at $1,226.00. Bears'next near-term downside price breakout objective is pushing prices below solidtechnical support at the August low of $1,167.10. First resistance is seen attoday's high of $1,214.00 and then at this week's high of $1,220.70. Firstsupport is seen at today's low of $1,202.10 and then at $1,200.00. Wyckoff'sMarket Rating: 2.5

Decembersilver futures bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $15.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $14.00. Firstresistance is seen at today's high of $14,825 and then at $15.00. Next supportis seen at the August low of $14.405 and then at $14.25. Wyckoff's MarketRating: 1.5.

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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