Gold Prices Drop To 1-Mo.Low As Greenback Surges Today
New York (Sept 27) Gold and silver prices are down in early-afternoon U.S. trading Wednesday. Gold futures prices dropped to a four-week low today. The metals saw pressure from a stronger U.S. dollar index today. Risk aversion remains very low in the world marketplace at present, which continues to squelch buying interest in the safe-haven metals. December gold futures were last down $11.60 an ounce at $1,187.60. December Comex silver was last down $0.116 at $14.285 an ounce.
U.S. stock indexes were posting solid gains today and are near contract and record highs, to attest to the “risk-on” trader and investor attitudes in the marketplace.
China-U.S. relations continue to sour, as Trump on Wednesday accused China of meddling in the upcoming U.S. elections. However, this matter has not yet had a significantly bullish impact on the safe-haven metals.
Focus in Europe is also on the new Italian government’s economic plans to address its fiscal and financial problems, which are required by European Union law. Many believe Italian lawmakers won’t comply with EU rules on the matter. The Euro currency was pressured today on reports Italy will delay its fiscal and economic projections. If the matter deteriorates, gold and silver could benefit on some safe-haven demand.
The other key outside market today finds November Nymex crude oil prices higher and trading around $72.00 a barrel. Nymex crude oil prices trading near eight-month highs have had little to no bullish impact on the gold and silver markets.
Technically, gold prices saw a bearish downside “breakout” from the recent trading range, which now suggests a retest of the August lows. 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 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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