Gold, silver pressed amid big drop in crude oil prices

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(Kitco News) – Gold and silver prices are lower in midday US trading Tuesday, due in part to a drop of over $5.00 in Nymex crude oil futures prices (as of this writing). Bearish near-term technicals are also weighing on the precious metals. October gold futures were last down $12.10 at $1,728.40. September Comex silver futures were last down $0.36 at $18.31 an ounce.

Global stock markets were mostly higher overnight. US stock indexes are lower at midday. Traders and investors are still concerned about Covid lockdowns in China that are crimping the world’s second-largest economy. Last week’s hawkish speech on US monetary policy by Fed Chairman Powell is also hanging over and depressing the marketplace.

The US data point of the week on this unofficial last week of summer is the August US employment situation report from the Labor Department on Friday. The key non-farm payrolls growth number is forecast to come it up 325,000 in August versus the July report showing a gain of 528,000 non-farm jobs.

The key outside markets today see Nymex crude oil prices sharply lower and trading around $91.70 a barrel. The US dollar index is a bit lower in midday US trading, on a corrective pullback after hitting a 20-year high on Monday. Meanwhile, the yield on the 10-year US Treasury note is fetching 3.08%.

Technically, October gold futures prices were poised to close at hit a four-week low close today. The gold futures bears have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at today’s high of $1,743.10 and then at $1,750.00. First support is seen at this week’s low of $1,722.50 and then at $1,715.00. Wyckoff’s Market Rating: 2.5.

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices hit a six-week low today. The silver bears have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at $17.50. First resistance is seen at this week’s high of $18.70 and then at $19.00. Next support is seen at the July low of $18.175 and then at $18.00. Wyckoff’s Market Rating: 2.0.

December NY copper closed down 580 points at 355.25 cents today. Prices closed nearer the session low today and hit a three-week low. The copper bulls have lost the slight overall near-term technical advantage. A six-week-old uptrend on the daily bar chart has been negatived. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 390.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 335.00 cents. First resistance is seen at today’s high of 363.55 cents and then at this week’s high of 370.10 cents. First support is seen at today’s low of 354.45 cents and then at 350.00 cents. Wyckoff’s Market Rating: 5.0.



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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