Gold Price Solidly Down, Hits 9-Mo. Low On Charts, Upbeat US Data
New York (Nov 23) Gold prices are solidly lower, hit a nine-month low and have fallen below key chart support at $1,200.00 in early U.S. trading Wednesday. The bearish near-term technical postures for gold and silver markets continue to invite chart-based selling interest. Sell stop orders were triggered in the Comex gold futures market when prices breached the $1,200.00 level. A higher U.S. dollar index today is also a bearish outside market force working against the precious metals market bulls. December Comex gold was last down $15.70 an ounce at $1,195.50. December Comex silver was last down $0.217 at $16.42 an ounce.
A strong U.S. durable goods report, just released, also helped to sink gold and silver markets, as it rallied the U.S. dollar index. The durables data falls into the camp of the U.S. monetary policy hawks, who want to see interest rates rise soon.
The Federal Reserve’s FOMC minutes will be released early this afternoon. However, with most market watchers already expecting the Fed to raise U.S. interest rates in December, today’s FOMC minutes are not likely to be markets-movers.
The major U.S. stock indexes have this week hit record highs, in the aftermath of the surprise U.S. presidential election that resulted in a win by Donald Trump. The “risk-on” behavior of the marketplace the past couple weeks has also worked against safe-haven gold.
There is a heavy slate of U.S. economic data due for release Wednesday, including the weekly jobless claims report, the weekly mortgage applications survey, durable goods orders, the monthly house price index, the U.S. flash manufacturing PMI, the University of Michigan consumer sentiment survey, new residential sales, the weekly DOE liquid energy stocks report, and the FOMC November meeting minutes.
The other key outside market on Wednesday finds Nymex crude oil futures prices weaker in early U.S. trading. That’s also a negative for the precious metals markets on this day. Nymex prices were closing in on $50.00 a barrel on Tuesday and hit a three-week high, before a corrective pullback occurred. Energy market watchers are awaiting the Nov. 30 OPEC oil cartel meeting. Many reckon OPEC may be able to come to a final agreement to cut production, although the outcome of the meeting still remains much in question.
While trading activity in many markets is active Wednesday morning, following the batch of U.S. economic data released, activity should wane quickly later this morning, ahead of the U.S. Thanksgiving holiday on Thursday, when U.S. markets are closed.
By 9:00am EST spot gold was down a whooping $17 to $$1,196, while spot silver slid nearly 2% to $16.39. Platinum also plunged $16 to $928.