Gold and silver slip to multi-month lows amid falling oil prices and bearish charts

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(Kitco News) – Gold and silver prices are lower at noon on U.S. trading Tuesday, with gold hitting a three-month low and silver an eight-month low. The bearish foreign markets today, which saw a higher US dollar index and lower crude oil prices, helped weigh on the precious metals markets. All-negative short-term technical charts are also fueling the bearish short-term speculative traders. Safe-haven metals have also recently been punished by rising bond yields. Bulls remain stumped as their metals ignore a shaky US stock market and heightened risk aversion in the broader market due to a major war and rising inflation. Gold futures in June were last down $13.10 to $1,845.30 and Comex silver in July were last down $0.205 to $21.61 an ounce.

US equity indices are mixed at midday on corrective rallies after recent heavy selling pressures. The S&P 500 and Nasdaq futures markets hit 12-month lows overnight. The US stock index bears have a solid short-term technical advantage as prices are in downtrends on the daily bar charts. The Russia-Ukraine war, rising Covid cases that have locked down major Chinese cities, and troubled price inflation are an axis of bearish elements that are likely to continue to limit a sustained recovery in stock markets.

Major outside markets see Nymex crude futures prices lower today, trading around $99.75 a barrel. Meanwhile, the US Dollar Index is higher and not far below this week’s 20-year high. The yield on the 10-year US Treasury is 2.954%.

Technically, gold futures prices hit a three-month low in June today. A two-month-old price downtrend line is present on the daily bar chart. Bears have the solid overall short-term technical advantage. The bulls’ next upside target is to find a close above the solid resistance at $1,900.00. Bears’ next short-term downside target is to push futures prices below the solid technical support at $1,800.00. Initial resistance is seen at today’s high of $1,864.70 and then $1,875.00. Initial support is seen at $1,835.00 and then $1,825.00. Wyckoff’s market rating: 3.5

July silver futures prices hit an eight-month low today. A steep price downtrend is present on the daily bar chart. The silver bears have the solid short-term overall technical advantage. The silver bulls’ next upside target is to close above solid technical resistance at $23.00 an ounce. The next downside target for the bears is a close below the solid support at the December low of $20.00. Initial resistance is seen at today’s high of $22.085 and then this week’s high of $22.395. The next support is at $21.25 and then $21.00. Wyckoff’s market rating: 1.5.

July NY Copper closed up 645 points today at 412.90 cents. Prices closed near the session low today, hitting a near five-month low. The copper bears have the solid short-term overall technical advantage. A steep price downtrend line is present on the daily bar chart. The next upside target for the copper bulls is to push and close prices above solid technical resistance at last week’s high of 444.00 cents. The next downside target for the bears is a close below the solid technical support at the December low of 411.05 cents. Initial resistance is seen at 420.00 cents and then today’s high of 425.80 cents. Initial support is seen at 411.05 cents and then 407.50 cents. Wyckoff’s market rating: 1.5.

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