Gold, Silver Prices Sharply Down Amid Bearish Outside Markets

(Kitco News) - Gold and silver prices are sharply down and near their daily lows in early-afternoonU.S. trading Monday. Gold notched a nearly 1.5-year low and fell below keytechnical support at $1,200.00, while silver scored a two-year low. A surgingU.S. dollar index and solidly lower crude oil prices were pressuring theprecious metals. December gold futures were last down $17.10 an ounce at$1,202.00. September Comex silver was last down $0.24 at $15.055 an ounce.

It'swas a risk-off day in the world marketplace today. Global stock markets werelower as currency markets are roiled again today, with focus on a crumblingTurkish lira and that country's financial troubles. The Lira was down as muchas 10% today following sharp losses last week. Turkey's government has so fardone or said little to stem the drop in the lira. The Indian rupee, SouthAfrican rand and Mexican peso are included in those secondary currencies alsogetting hit hard today by an appreciating U.S. dollar. The U.S. dollar index rose to another 13-month high today, on safe-haven demand. The marketplace isworried about the Turkish lira's severe depreciation expanding into a contagionof secondary world currencies.

Frustratingfor the gold and silver market bulls is the fact their metals are getting nobenefit from safe-haven demand amid the keener uncertainty in the worldmarketplace.

Meantime,Nymex crude oil futures are trending lower and hit a nearly seven-week low of$65.91 a barrel. Oil is arguably the leader of the raw commodity sector, andwhen it has big down days, other commodity markets are dragged down, too.

Therewas no major U.S. economic data released Monday.

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 $1,230.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,150.00. Firstresistance is seen at $1,212.50 and then at today's high of $1,221.40. Firstsupport is seen at $1,200.00 and then at $1,190.00. Wyckoff's Market 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 $15.00. Firstresistance is seen at today' high of $15.345 and then at $15.50. Next supportis seen at $15.00 and then at $14.75. 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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