(Kitco News) - Gold and silver futures prices were sharply down and at a three-plus-month lows in late U.S. trading Tuesday. A stronger U.S. dollar index worked against the precious metals market bulls on this day. The British pound fell to a 31-year low against the U.S. dollar Tuesday, as the U.K. government moves faster than many expected on leaving the European Union. December Comex gold was last down $35.60 an ounce at $1,276.70. December Comex silver was last down $0.808 at $18.055 an ounce.
There were also comments from a Federal Reserve official today that fell into the camp of the monetary policy hawks who want U.S. interest rates to rise sooner rather than later. Fed official Jeff Lacker suggested today that he would like to see a U.S. rate hike soon. U.S. manufacturing data released this week was also upbeat, to suggest a tightening U.S. labor market that would warrant an interest rake hike.
An improved trader and investor risk appetite in the world marketplace early this week weighed on safe-haven gold, too. Asian and European equity markets were mostly higher Tuesday. U.S. stock indexes were narrowly mixed at midday. The German Deutsche Bank shares rose Tuesday as worries about that bank having a liquidity crisis have at least temporarily eased. The Australian central bank left its interest rates unchanged Tuesday, which also helped to support Asian stock markets. A weaker Japanese yen against the U.S. dollar Tuesday was also friendly for Asian stock indexes. China’s markets are closed all this week for the National Day Break holiday.
Chart-based selling in gold and silver futures was also featured Tuesday. Sell stop orders were triggered in both markets when near-term technical support levels were breached just after the New York day session openings, and then during the morning trading session.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
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Technically, December gold futures prices closed nearer the session low and hit a 3.5-month low today. The gold bulls today lose their overall near-term technical advantage. Prices have been trending lower for three months. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,259.00. First resistance is seen at $1,290.00 and then at $1,300.00. First support is seen at today’s low of $1,275.80 and then at $1,270.00. Wyckoff’s Market Rating: 4.5
December silver futures prices closed nearer the session low and hit a three-month low today. The silver market bulls have also lost their overall near-term technical advantage. Prices have been trending lower for three months. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $19.385 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.25. First resistance is seen at $18.25 and then at $18.50. Next support is seen at $18.00 and then at $17.75. Wyckoff's Market Rating: 4.5.
December N.Y. copper closed down 225 points at 217.00 cents today. Prices closed nearer the session low today on a corrective pullback from recent gains that saw prices last Friday hit a two-month high. The copper bulls still have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 226.00 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 219.60 cents and then at last week’s high of 221.90 cents. First support is seen at today’s low of $2.1660 and then at 213.90 cents. Wyckoff's Market Rating: 5.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
