Gold prices hit 2-plus-year low on economic worries, bearish charts

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(Kitco News) – Gold prices fell sharply in the US trade on Thursday and reached a near 2.5-year low. Silver prices also fell sharply. Precious metals are being impacted by global economic concerns, which threaten to dent commercial and consumer demand for raw materials, including metals. In October, gold fell by $ 36.00 to $ 1,662.20 and in December, silver was down $ 0.324 to close at $19.245.
Markets were a bit calm overnight and this morning, but it appears that recent monetary policy comments from central bank officials and renowned market analysts combined with warm inflation readings are likely to dampen risk appetite quickly that was seen earlier today. And remember, the time of year (September and October) the stock and financial markets take place can be very hard to go through. Gold and silver bulls are disappointed that risk aversion in the market is not turning into more safe-haven demand for the two metals.
Traders are focused on next week’s FOMC meeting, which expects the Fed to raise the US fed funds key rate by 0.75% in its effort to quell problematic price inflation. Precious metals traders believe that tighter monetary policies from most of the world’s major central banks will further slow global economic growth, reducing consumer and commercial demand for the metals.

Global stock markets were mostly up slightly overnight. US stock indices are lower at noon.
Nymex crude oil prices are very low today in major external markets and are trading at around $ 85.50 per barrel. The US Dollar Index is almost stable in early US trading. The yield on the 10-year US Treasury note is getting around 3.44%.

Technically, the futures price of gold in October reached a 2.5-year low today. Gold futures bears have solid overall near term technical advantage and have gained more strength today. The next upside price target for the bulls is to produce a build above a solid resistance level at $1,700.00. The next short term downside price objective of the Bears is pushing futures prices below solid technical support at $1,600.00. Resistance is first seen at $1,675.00 and then at $1,686.30. Support was first seen at $1,650.00 and then at $1,635.00. Market Rating of Wyckoff: 1.5.

24 hour live silver chart [ Kitco Inc. ]

The overall near-term technical advantage of the December silver futures bears has strengthened. The next upside price objective for Silver Bulls is to close above solid technical resistance at $21.00. The next downside price objective for the bears is to close the price below solid support at $18.00. First resistance is seen at today’s high of $19.625 and then at $20.00. The next support is seen at $19.00 and then at this week’s low of $18.775. Wyckoff’s Market Rating: 2.5.
December NY Copper closed 380 points down at 348.20 cents today. Prices closed near session lows today. Copper bears have overall near-term technical advantage. The next upside price objective for Copper Bulls is to push the price above solid technical resistance at the August high of 378.35 cents and close. The next downside price objective for the bears is closing prices below solid technical support from July lows at 315.55 cents. Resistance is seen first at 355.00 cents and then at this week’s high of 369.25 cents. First support is seen at September lows of 336.10 cents and then at 330.00 cents. Wyckoff’s Market Rating: 3.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those views. Kitco Metals Inc. The author has made every effort to ensure the accuracy of the 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 exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article is not liable for any damages and/or damages caused by the use of this publication.

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