Gold, Silver, Platinum, Palladium Prices Pounded By U.S. Dollar Dominance

(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 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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