Gold Sells Off Amid Bearish Outside Markets, Better Risk Appetite

(Kitco News) - Gold prices ended the U.S. day session solidly lower Tuesday, following Monday evening’s U.S. presidential debate between Hillary Clinton and Donald Trump that saw Clinton win the contest, most market watchers reckoned. This helped to put some risk appetite back into the marketplace as world stock markets were mostly higher Tuesday. The key “outside markets” were also bearish for the precious metal markets Tuesday, as the U.S. dollar index was firmer and crude oil prices were lower. December Comex gold was last down $13.40 an ounce at $1,330.70. December Comex silver was last down $0.426 at $19.17 an ounce.

There is a sense, especially outside the U.S., that Trump is an unknown and potentially unpredictable, which could bring anxiety to some markets if it appears Trump has a better chance to become the next U.S. president. Markets are now starting to pay closer attention to the U.S. presidential race heading up to the early-November election.

An upbeat U.S. consumer confidence index report for September also helped to pressure the precious metals markets Tuesday. The September figure was 104.1 versus 101.8 in August. The report falls into the camp of the U.S. monetary policy hawks.

Traders and investors worldwide are closing watching this week’s OPEC oil cartel meeting in Algiers. Oil ministers arriving in Algiers for the meeting are already making all kinds of comments to the press. However, most energy market watchers do not believe OPEC will make any significant moves to reduce their collective crude oil output, or to forge an agreement with Russia to stabilize world oil prices. Iran and Saudi Arabia don’t like each other and are not likely to cooperate on any production cuts.

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Technically, December gold futures prices closed nearer the session low today. The gold bulls have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,357.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,305.50. First resistance is seen at $1,340.00 and then at this week’s high of $1,346.10. First support is seen at today’s low of $1,327.70 and then at $1,320.00. Wyckoff’s Market Rating: 6.0

December silver futures prices closed nearer the session low today. The silver market bulls have the slight overall near-term technical advantage but are fading. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the September high of $20.235 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $18.46. First resistance is seen at today’s high of $19.61 and then at this week’s high of $19.82. Next support is seen at $19.00 and then at the September low of $18.715. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed down 255 points at 217.30 cents today. Prices closed near mid-range today. The key “outside markets” were bearish for copper today as the U.S. dollar index was higher and crude oil prices were lower. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 212.00 cents. First resistance is seen at today’s high of 219.65 cents and then at last week’s high of 220.65 cents. First support is seen at today’s low of $2.1610 and then at 213.90 cents. Wyckoff's Market Rating: 5.5.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com