Gold, silver lower as crude oil sinks, bond yields rise

Gold and silver prices are lower in near midday Tuesday. Weaker crude oil prices and rising U.S. Treasury bond yields on this say helped to pressure the precious metals markets. Also, recently rallying U.S. stock indexes that hit multi-month highs Monday are pulling away trader/investor interest in the long side of the safe-haven gold and silver markets. October gold futures were last down $7.80 at $1,780.00. September Comex silver futures were last down $0.167 at $20.11 an ounce.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are mixed near midday. Corporate earnings reports are in focus this week. Risk appetite in the marketplace this week is less than robust after some downbeat economic from China that prompted China’s central bank to ease its monetary policy. Also, a weaker U.S. Empire State manufacturing report on Monday has ratcheted up worries about an impending U.S. recession.

The key outside markets today see Nymex crude oil prices lower and trading around $87.50 a barrel. Reports said Iran may be taking steps in its nuclear program to ease international sanctions on Iranian oil. The U.S. dollar index is a bit weaker in midday U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.837%.

Technically, October gold futures bears have the overall near-term technical advantage. A fledgling price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at the August high of $1,814.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,725.00. First resistance is seen at today’s high of $1,787.60 and then at 1,800.00. First support is seen at today’s low of $1,775.20 and then at $1,760.00. Wyckoff's Market Rating: 3.5.

September silver futures bears have the overall near-term technical advantage. A fledgling uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today’s high of $20.25 and then at $20.50. Next support is seen at today’s low of $19.86 and then at $19.47. Wyckoff's Market Rating: 3.5.

September N.Y. copper closed down 65 points at 361.10 cents today. Prices closed near mid-range. The copper bulls and bears are on a level overall near-term technical playing field. Prices are trending up on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at last week’s high of 371.30 cents and then at 380.00 cents. First support is seen at this week’s low of 354.60 cents and then at 350.00 cents. Wyckoff's Market Rating: 5.0.

By Jim Wyckoff

Time to buy Gold and Silver on the dips