(Kitco News) – Gold and silver prices are sharply lower in midday U.S. trading Monday. Gold notched a seven-week low and silver prices hit a five-week low. A strong U.S. dollar index that hit a new high for the year on Monday is credited with putting much of the downside pressure on the precious metals today. Better risk appetite in the market place early this week is also bearish for the safe-haven metals. December gold futures were last down $28.60 an ounce at 1,477.60. December Comex silver prices were last down $0.532 at $17.12 an ounce. Both markets were poised to close at technically bearish monthly low closes on this last day of the month.
There was less risk aversion in the marketplace Monday, following markets being roiled last Friday by reports the U.S. was considering limiting U.S. investors’ investment in China, including the U.S. stock exchanges de-listing Chinese companies. Weekend reports, including a statement from the U.S. Treasury Department, then said the Trump administration is not considering such moves.
Asian stock markets saw some selling pressure after the 17th weekend in a row of demonstrations in Hong Kong. This past weekend is being called the worst, with many arrests after protestors bombarded police with everything from bricks to firebombs.
China’s economy got some slightly upbeat news Monday, as the official manufacturing purchasing managers index rose to 49.8 in September from 49.5 in August. It was the fifth month in a row with a reading below 50.0, which suggests contraction in the sector. The September PMI report did come in slightly above market expectations.
Nymex crude oil prices are lower and trading around $55.25 a barrel.
Technically, the gold bulls have the slight overall near-term technical advantage, but are fading fast. A four-month-old uptrend on the daily bar chart has been negated. A downtrend line is now in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,525.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,450.00. First resistance is seen at $1,490.00 and then at $1,500.00. First support is seen at today’s low of $1,472.20 and then at $1,467.00. Wyckoff’s Market Rating: 5.5
December silver futures bulls have lost their overall near-term technical advantage. A four-month-old uptrend on the daily bar chart has been negated and a four-week-old downtrend is now in place. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.0 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $17.50 and then at today’s high of $17.66. Next support is seen at today’s low of $17.02 and then at $16.80. Wyckoff’s Market Rating: 5.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
