Gold And Silver Prices Hit Multi-Week Lows Amid Strong Greenback

New York (Nov 12)  Gold and silver prices are moderately down and have hit four-week and eight-week lows, respectively, in early-afternoon U.S. trading Monday. The precious metals are pressured by a very strong U.S. dollar on the foreign exchange market. The U.S. dollar index hit a 16-month high today. December gold futures were last down $5.30 an ounce at $1,203.30. December Comex silver was last down $0.13 at $14.01 an ounce.

A solid sell off in the U.S. stock market today did not help out the precious metals bulls. However, if that selling pressure extends into Tuesday, look for some safe-haven demand to support gold and silver prices.

The U.S. government was closed today for the Veterans Day holiday, which made for some quieter trading conditions.

The other key “outside market” today saw Nymex crude oil futures prices firmer and trading just below $61.00 a barrel after hitting a seven-month low last Friday. Reports today say Saudi Arabia and Russia will cut their oil exports and prod the OPEC oil cartel to lower its collective crude oil production, in the wake of the recent steep downdraft in oil prices.

Technically, 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 last week’s high of $1,238.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00.

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