Gold and silver prices continue to grind lower
New York (Nov 12) Gold and silver prices are modestly down in midday U.S. trading Tuesday. The precious metals bulls are trying, and with little success so far, to stabilize their markets after recent strong selling pressure has drove prices to three-month today. December gold futures were last down $2.40 an ounce at 1,454.70. December Comex silver prices were last down $0.097 at $16.71 an ounce.
President Trump was giving a speech to the New York Economic Club as of this writing. Traders and investors are hoping he will provide some fresh insight on the U.S.-China trade front.
Asian and European stock indexes were mostly up overnight. U.S. stock indexes are firmer at midday and poked to new record highs again. Trader and investor funds continue to flow into equities at the expense of the safe-haven metals.
The civil unrest in Hong Kong has escalated in recent days. Some reports are saying the city is now on the verge of shutting down. One protester was shot by police over the weekend and another man was set on fire by protesters. This situation could flare up into a major geopolitical event very quickly if mainland China gets more involved in the matter.
The key “outside markets” today see the U.S. dollar index modestly higher. Nymex crude oil prices are slightly firmer and trading around $57.00 a barrel. A U.S. Energy Department official said U.S. shale oil production will reach 13 million barrels per day in December.
Technically, December gold futures prices were nearer the session high at midday today. The bears have the overall near-term technical advantage and have momentum as prices have been trending lower for two months. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,425.00. First resistance is seen at this week’s high of $1,477.40 and then at $1,475.00. First support is seen at today’s low of $1,446.20 and then at $1,440.00. Wyckoff's Market Rating: 4.0
December silver futures prices were nearer the session low at midday and hit another three-month low today. The silver bears have the overall near-term technical advantage. Prices have been trending lower for two months. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce.
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