Gold And Silver Prices Pressured By Bearish Outside Markets

~~Gold and silver prices are lower in early-afternoon U.S. dealings Tuesday. The metals are seeing pressure from a stronger U.S. dollar and declining crude oil prices. February gold futures were last down $9.80 an ounce at $1,218.90. March Comex silver was down $0.153 at $14.19 an ounce.

Gold and silver held modest gains heading into the U.S. futures markets openings. However, both metals started to fade when the U.S. dollar index moved to its daily high. The serious U.S.-China trade war is bearish for the metals markets, as China is a major importer of metals. This week’s meeting between U.S. President Trump and China’s President Jinping Xi in Argentina is not expected to produce a very positive outcome on the trade matter. Trump made more hardline comments on the matter Monday. There is general agreement that the trade war is hurting China’s economy much more than the U.S. economy. The U.S.-China trade war has also been supporting the U.S. dollar’s appreciation.

Nymex crude oil futures prices are lower today. Prices Monday hit a 13-month low of $50.10. Crude prices are down around 30% following the recent sharp declines. A key OPEC oil cartel meeting is scheduled for next week.

There is talk in the marketplace recently that the U.S. Federal Reserve may take a more dovish tone on its monetary policy due to notions the recent strong U.S. economic growth may be quickly decelerating. The Federal Open Market Committee meets to discuss monetary policy in late December. It’s widely expected the Fed will slightly raise its key Fed funds target range in December. However, a commentary in the Wall Street Journal today said Fed monetary policy will be “wide open” for 2019, which could lead to more uncertainty in the marketplace.

Technically, the gold bears have the overall near-term technical advantage and gained downside momentum today. Gold bulls' next upside near-term price breakout objective is to produce a close in February futures above solid technical resistance at the October high of $1,252.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at $1,225.00 and then at today’s high of $1,231.70.

By 2:45am EST spot gold was down $9 at $1.213, while spot silver slid 11 cents to $14.14. Meanwhile, spot platinum plunged $10 to $834.

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