Gold, Silver, Platinum, Palladium Prices Pounded By U.S. Dollar Dominance

(Kitco News) - Gold , silver, platinum and palladium prices were hammered lower Tuesday by a surging U.S. dollar on the foreign exchange market. Gold scored a nearly 1.5-year low, silver a two-year low, platinum a 14-year low and palladium a 13-month low. TheU.S. dollar index hit a 14-month high today on worries about a global currency market crisis developing. December gold futures were last down $17.50 an ounce at $1,183.30. September Comex silver was last down $0.633 at $14.42 an ounce.

U.S. stock indexes were also sharply lower today, on keener risk aversion in the marketplace.

U.S.-Turkey relations have further deteriorated as Turkey has slapped economic sanctions on the U.S. While the Turkish lira stabilized at mid-week, other secondary currencies are still very wobbly and traders/investors worldwide are still jittery that a secondary currency contagion could develop as the U.S. dollar continues to appreciate against most world currencies. Gold and silver bulls remain stymied their safe-haven metals can’t get a bid due to the risk aversion in the world marketplace at present. Still, it would be hard for me to fathom a significant escalation in the currency market turmoil not having a bullish impact on safe-haven gold and silver.

The other key outside market today finds Nymex crude oil prices sharply lower and trading just below $64.00 a barrel. Oil prices hit a seven-week low today, and if oil continues to slide it would be a serious bearish element for the raw commodity sector, including the metals.

Technically, gold bears have the solid overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at this week’s high of $1,221.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,150.00. First resistance is seen at $1,190.00 and then at $1,200.00. First support is seen at today’s low of $1,182.60 and then at $1,175.00. Wyckoff's Market Rating: 1.0

September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at $14.75 and then at $15.00. Next support is seen at today’s low of $14.345 and then at $14.25. Wyckoff's Market Rating: 1.0.