Gold And Silver Prices Down On Upbeat Risk Appetite

New York (oct 1)  Gold and silver prices are weaker in early-afternoon U.S. trading today. Keener risk appetite is in the marketplace to start the trading week has the precious metals under pressure, as does a firmer U.S. dollar index today. It’s very likely going to take a geopolitical shock to the marketplace to jumpstart a decent rally in the safe-haven gold market. December gold futures were last down $2.70 an ounce at $1,193.50. December Comex silver was last down $0.202 at $14.51 an ounce.

World stock markets were mixed to firmer today, while U.S. stock indexes are solidly higher on news of a U.S.-Canada trade deal reached on Sunday. Chinese markets are closed until Friday for a public holiday.

Focus in Europe is on the new anti-establishment Italian government’s economic plan to address its fiscal and financial problems. The Euro currency has been pressured and the U.S. dollar boosted by this matter, which could be the next flash point in the currency and financial markets, which could also lift the safe-haven gold and silver markets. As the calendar has turned to October, traders and investors are half-way through what history shows can be the turbulent months of September and October—with no speedbumps yet encountered.

The key outside markets today find the U.S. dollar index higher and hitting a three-week high. The greenback bulls have regained upside technical momentum the past three sessions. Meantime, November Nymex crude oil prices are solidly higher, have hit a new contract and eight-month high nearing $75.00 a barrel. Brent crude oil futures are at a four-year high. Rising oil prices should be benefitting the metals markets more than is currently the case, if recent history is a gauge.

Technically, gold prices last week saw a bearish downside “breakout” from the recent trading range, which suggests a retest of the August low. The gold bears have the firm overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid technical resistance at $1,220.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10.

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