The GraveYard Shift

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AM-Roundup-Gold, silver see price pressure amid bearish outside markets


Tuesday September 08, 2020 08:27



(Kitco News) - Gold and silver prices are weaker in early U.S. trading Tuesday, amid bearish outside markets that see sharply lower crude oil prices and a solid rally in the U.S. dollar index. However, selling pressure is intensifying in the U.S. stock market as the day session is set to begin, and that could lift the safe-haven metals as the trading session progresses. Gold and silver prices have already moved up from their overnight lows. October gold futures were last down $8.30 at $1,917.90 and December Comex silver were last down $0.007 at $26.71 an ounce.

Global stock markets were mixed overnight, with Asian shares mostly firmer and European shares mostly weaker. After a long U.S. holiday weekend and the unofficial end to summer, traders and investors are more risk averse to start the U.S. trading week. President Trump on Monday said he might “decouple” the U.S. from China, in the latest salvo in a running feud between the world’s two largest economies.

In other overnight news, the Eurozone’s GDP in the second quarter came in a bit better than expected, at down a revised 11.8% from the first quarter and down 14.7%, year-on-year.

The British pound is seeing selling pressure as the U.K. and the European Union move closer to separating (Brexit).

The important outside markets today see Nymex crude oil prices solidly lower, hitting a six-week low and trading around $37.45 a barrel. Leading oil producer Saudi Arabia has announced it is cutting its oil prices due to likely decreasing demand for crude in the coming months. The U.S. dollar index is solidly higher early today. The yield on the U.S. Treasury 10-year note is trading around 0.685% today.

U.S. economic data due for release Tuesday includes the NFIB small business index, the employment trends index, the IDB/TIPP economic optimism index and consumer credit.



Technically, the gold bulls still have the firm overall near-term technical advantage, amid recent choppy trading. Prices are still in an overall near-term uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,939.10 and then at $1,950.00. First support is seen at the overnight low of $1,905.30 and then at $1,900.00. Wyckoff's Market Rating: 7.0



December silver futures bulls have the firm overall near-term technical advantage. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $30.19 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.80. First resistance is seen at the overnight high of $27.385 and then at $27.89. Next support is seen at the overnight low of $26.35 and then at $26.00. Wyckoff's Market Rating: 7.0.
By Jim Wyckoff


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