Gold, Silver Hit Hard By Sell-Off in Raw Commodity Sector

(Kitco News) - Gold and silver prices are solidly lower and near their daily lows in early-afternoonU.S. trading Wednesday. The precious metals sold off in sympathy with aslumping raw commodity sector today, after the U.S. hit China with anothervolley of trade sanctions. A higher U.S. dollar index today also is a negativefor the precious metals markets. Augustgold futures were last down $10.90 anounce at $1,244.50. July Comex silver was last down $0.272 at $15.815 an ounce.

ImportantU.S. economic data out this week included the producer price index for June,which this morning came in at up 0.3% from May, which was hotter than the 2.0%rise that was forecast. The data did not have a significant impact on theprecious metals or other markets. The June CPI report on Thursday is also seenup 0.2% from May.

Worldstock markets were rattled again today by the news the U.S. has targeted Chinawith 10% tariffs on another $200 billion in Chinese product imports, and Chinaagain responded with another threat to retaliate. The U.S.-China trade war hasat least temporarily cast a pall over world equity markets at mid-week. However,this market uncertainty has not produced any safe-haven demand for gold andsilver, as those metals again chose to follow their raw commodity marketcounterparts lower today.

U.S.President Trump is in Europe today meeting with European leaders, with a meetingwith Russian President Vladimir Putin later this week. The marketplace willwatch Trump’s meetings closely, as the U.S. president has had harsh words forEuropean leaders regarding trade and their lack of financial support for NATO.

Theother key “outside market” today finds Nymex crude oil prices sharply lower andtrading around $72.00 a barrel. Libyan oil exports are hitting the world marketagain, after being disrupted by political violence, and that’s putting somepressure on crude today.

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Technically,gold prices are not far above last week’s 12-month-low. The gold bears have thesolid overall near-term technical advantage. A three-month-old downtrend is inplace on the daily bar chart. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at $1,275.00.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,230.00. First resistance is seen at $1,250.00 andthen at today’s high of $1,257.30. First support is seen at last week’s low of$1,238.80 and then at $1,230.00. Wyckoff's Market 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 this week’s high of $16.25 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$15.55. First resistance is seen at today’s high of $16.00 and then at $16.14.Next support is seen at last week’s low of $15.80 and then at $15.55. Wyckoff'sMarket Rating: 2.0.

SeptemberN.Y. copper closed down 935 points at 274.65 cents today. Prices closed nearerthe session low 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 at300.00 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 today’s high of 283.05 cents. First support is seen attoday’s low of 271.70 cents and then at 270.00 cents. Wyckoff's Market Rating:1.0.

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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