Gold, Silver Hit 12-Mo. Lows On Bearish Outside Markets, Charts
(Kitco News) - Gold and silver prices are down and have hit new 12-month lows in early U.S. tradingThursday. A resurgent U.S. dollar index this week, which hit a 12-month highovernight, and slumping crude oil prices are bearish outside market elementsfor the precious metals markets. The technical postures for gold and silver arealso fully bearish, which is inviting the chart-based sellers. August goldfutures were last down $12.30 an ounce at $1,215.70. September Comex silver wasdown $0.284 at $15.29 an ounce.
Whilethere are no significant early chart clues gold and silver prices are nearbottoms, they are presently short-term oversold, technically, and due for acorrective bounce very soon.
Worldstock markets were mostly lower overnight. U.S. stock indexes are pointedtoward weaker openings when the New York day session begins, on some mildprofit taking after scoring multi-month or contracts highs this week.
TheU.S. hard line against its trading partners is back on the front burner of themarketplace and is pressuring world equity markets Thursday. President Trumphas again threatened the European Union with tariffs on its automobiles. TheChinese yuan declined to a 12-month low against the U.S. dollar today amidexpectations that Chinese monetary officials will continue to let the yuandepreciate, including by easing China’s monetary policy.
Thekey “outside markets” today find Nymex crude oil prices lower and trading justabove $68.00 a barrel. Recent solid losses in crude suggest this market hastopped out. Meantime, the U.S. dollar index is higher again today, boosted inpart by very upbeat comments on the U.S. economy this week from Federal ReserveChairman Jerome Powell.
U.S.economic data due for release Thursday includes the weekly jobless claimsreport, the Philadelphia Fed business survey, and leading economic indicators.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
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 August futures above solidresistance at this week’s high of $1,245.80. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at $1,200.00.First resistance is seen at $1,225.00 and then at Wednesday’s high of $1,229.10.First support is seen at $1,210.00 and then at $1,200.00. Wyckoff's MarketRating: 1.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
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 this week’s high of $15.90 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at $15.00. First resistance is seen at $15.50 and then at Wednesday’shigh of $15.625. Next support is seen at $15.20 and then at $15.00. Wyckoff'sMarket Rating: 1.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@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.