(Kitco News) - Gold ,silver, platinum and palladium prices were hammered lower Tuesday by a surgingU.S. dollar on the foreign exchange market. Gold scored a nearly 1.5-year low,silver a two-year low, platinum a 14-year low and palladium a 13-month low. TheU.S. dollar index hit a 14-month high today on worries about a global currencymarket crisis developing. December gold futures were last down $17.50 an ounceat $1,183.30. September Comex silver was last down $0.633 at $14.42 an ounce.
U.S.stock indexes were also sharply lower today, on keener risk aversion in themarketplace.
U.S.-Turkeyrelations have further deteriorated as Turkey has slapped economic sanctions onthe U.S. While the Turkish lira stabilized at mid-week, other secondarycurrencies are still very wobbly and traders/investors worldwide are stilljittery that a secondary currency contagion could develop as the U.S. dollarcontinues to appreciate against most world currencies. Gold and silver bullsremain stymied their safe-haven metals can't get a bid due to the risk aversionin the world marketplace at present. Still, it would be hard for me to fathom asignificant escalation in the currency market turmoil not having a bullishimpact on safe-haven gold and silver.
Theother key outside market today finds Nymex crude oil prices sharply lower andtrading just below $64.00 a barrel. Oil prices hit a seven-week low today, andif oil continues to slide it would be a serious bearish element for the rawcommodity sector, including the metals.
Technically,gold bears have the solid overall near-term technical advantage amid a pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at this week's high of $1,221.40. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at$1,150.00. First resistance is seen at $1,190.00 and then at $1,200.00. Firstsupport is seen at today's low of $1,182.60 and then at $1,175.00. Wyckoff'sMarket Rating: 1.0
Septembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical 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 $14.75 and then at $15.00. Next support is seen attoday's low of $14.345 and then at $14.25. Wyckoff's Market Rating: 1.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff