(Kitco News) – Gold and silver prices are solidly lower in early-afternoon U.S. trading Monday, and close to their daily lows. The safe-haven metals did not get any benefit from an uptick in risk aversion to start the trading week today. Instead, both are being pressured by a strong U.S. dollar on the foreign exchange market, and worries about precious metals demand coming out of China. December gold futures were last down $16.80 an ounce at $1,188.80. December Comex silver was last down $0.324 at $14.325 an ounce.
World stock markets were mostly lower today, with steep losses seen in the Chinese stock market after it was closed last week for a public holiday. Chinese monetary officials during the weekend loosened monetary policy a bit more but that did not stop their stock market sell off. The U.S.-China trade war is apparently starting to significantly impact the Chinese economy, prompting ideas the country will curb its raw commodity imports.
The U.S. government, including the Treasury bond cash market, is closed for the Columbus Day holiday today. Canadian markets are shut for the Thanksgiving holiday.
World equities are also still pressured by rising government bond yields that are pulling investor interest away from stocks. U.S. stock indexes are in very mature bull market runs that have many wondering if the end is near.
Risk-off attitudes to start the trading week are also being perpetuated by the new Italian anti-establishment government not falling into line with European Union rules on a budget.
Technically, December gold futures prices are now at the bottom of the recent trading range, which gives the bears fresh power. The gold bears have the solid overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,220.70. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at $1,200.00 and then at today’s high of $1,208.00. First support is seen at today’s low of $1,186.00 and then at the September low of $1,184.30. Wyckoff’s Market Rating: 2.0
December silver futures prices closed nearer the session low today. A fledgling three-week-old uptrend on the daily bar chart was negated today. The silver bears have the solid overall near-term technical advantage and gained fresh power today. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.07 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at $14.50 and then at today’s high of $14.70. Next support is seen at today’s low of $14.285 and then at $14.195. Wyckoff’s Market Rating: 2.0.
December N.Y. copper closed up 25 points at 276.55 cents today. Prices closed nearer the session high today. The copper bears have the overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at 280.00 cents and then at 285.00 cents. First support is seen at today’s low of 273.50 cents and then at 270.00 cents. Wyckoff’s Market Rating: 3.0.
By Jim Wyckoff
For Kitco News