Gold, Silver Hit 12-Mo. Lows Early, But Now Up From Daily Lows

(Kitco News) - Gold and silver prices areslightly down in early-afternoon trading Wednesday, but up from session lowsthat saw the metals hit 12-month lows earlier today. An appreciating U.S.dollar and down-trending crude oil prices are bearish “outside market” forcesworking against the precious metals markets this week. However, the USDX haslost most of its daily gains, while crude oil prices have erased early lossesand are posting a slight advance at midday. Augustgold futures were last down$0.70 an ounce at $1,226.60. September Comex silver was down $0.082 at $15.535an ounce.

Globaltrader and investor attitudes remain upbeat, which is supportive for equitiesbut bearish for safe-haven gold and silver. Federal Reserve Chairman JeromePowell gave a very upbeat assessment on the U.S. economy to a U.S. Senate panelon Tuesday, which helped to boost U.S. stock indexes to contract or multi-monthhighs.

Thekey outside markets today find Nymex crude oil prices firmer and trading justabove $68.00 a barrel. Recent solid losses in crude suggest this market hastopped out. Brent crude oil prices hit a three-month low today. Meantime, the U.S. dollar index is slightly higher today and not far below its recent12-month high.

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Technically,the gold bears have the solid overall near-term technical advantage. There areno early clues to suggest a market bottom is close at hand. A three-month-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 $1,250.00. Bears' next near-term downside price breakout objective ispushing prices below solid technical support at $1,200.00. First resistance isseen at $1,236.20 and then at this week’s high of $1,245.80. First support isseen at today’s low of $1,220.90 and then at $1,210.00. Wyckoff's MarketRating: 1.5

Thesilver bears have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $16.00 an ounce. The next downside price breakout objectivefor the bears is closing prices below solid support at $15.00. First resistanceis seen at today’s high of $15.625 and then at $15.75. Next support is seen attoday’s low of $15.41 and then at $15.25. Wyckoff's Market Rating: 1.5.

SeptemberN.Y. copper closed up 110 points at 275.75 cents today. Prices closed nearerthe session high and hit a 12-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 at290.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at 260.00 cents. First resistance is seen at280.00 cents and then at 283.05 cents. First support is seen at today’s low ofat 271.55 cents and then at 270.00 cents. Wyckoff's Market Rating: 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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