Gold price hits 9 Month Low 

Gold prices are solidly lower, hit a nine-month low and have fallen below key chart support at $1,200.00 in early U.S. trading Wednesday. The bearish near-term technical postures for gold and silver markets continue to invite chart-based selling interest. Sell stop orders were triggered in the Comex gold futures market when prices breached the $1,200.00 level. A higher U.S. dollar index today is also a bearish outside market force working against the precious metals market bulls. December Comex gold was last down $15.70 an ounce at $1,195.50. December Comex silver was last down $0.217 at $16.42 an ounce.

A much stronger-than-expected U.S. durable goods report, just released, also helped to sink gold and silver markets, as it rallied the U.S. dollar index. The strong durables data falls into the camp of the U.S. monetary policy hawks, who want to see interest rates rise soon.

The Federal Reserve’s FOMC minutes will be released early this afternoon. However, with most market watchers already expecting the Fed to raise U.S. interest rates in December, today’s FOMC minutes are not likely to be markets-movers.

There were also reports out overnight that the Indian government is exploring a ban on gold imports to help the government combat illegal, black market money activities in India. These reports may also be adding some downside pressure on the gold market today. India is one of the world’s top-two gold importers, along with China.

The major U.S. stock indexes have this week hit record highs, in the aftermath of the surprise U.S. presidential election that resulted in a win by Donald Trump. The “risk-on” behavior of the marketplace the past couple weeks has also worked against safe-haven gold.

There is a heavy slate of U.S. economic data due for release Wednesday, including the weekly jobless claims report, the weekly mortgage applications survey, durable goods orders, the monthly house price index, the U.S. flash manufacturing PMI, the University of Michigan consumer sentiment survey, new residential sales, the weekly DOE liquid energy stocks report, and the FOMC November meeting minutes.

The other key outside market on Wednesday finds Nymex crude oil futures prices weaker in early U.S. trading. That’s also a negative for the precious metals markets on this day. Nymex prices were closing in on $50.00 a barrel on Tuesday and hit a three-week high, before a corrective pullback occurred. Energy market watchers are awaiting the Nov. 30 OPEC oil cartel meeting. Many reckon OPEC may be able to come to a final agreement to cut production, although the outcome of the meeting still remains much in question.

While trading activity in many markets is active Wednesday morning, following the batch of U.S. economic data released, activity should wane quickly later this morning, ahead of the U.S. Thanksgiving holiday on Thursday, when U.S. markets are closed.

Technically, December gold futures bears have the firm overall near-term technical advantage and gained more power today. Prices have been trending lower for 4.5 months. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,220.90. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at $1,175.00. First resistance is seen at $1,200.00 and then at $1,210.00. First support is seen at today’s low of $1,188.30 and then at 1,180.00. Wyckoff’s Market Rating: 2.5

December silver bears have the firm near-term technical advantage as prices hit a five-month low today. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is at the overnight high of $16.725 and then at this week’s high of $16.885. Next support is seen at $16.25 and then at $16.00. Wyckoff’s Market Rating: 2.5.

Source: Forbes

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