Gold, Silver Get No Safe-Haven Bid From EM Currencies’ Woes

(Kitco News) - Gold and silver prices are moderately lower in early-afternoon U.S. trading Thursday. While the safe-haven metals traders are closely watching developments today in the emerging market currencies, so far they have not benefitted from the uncertainty of the matter. December gold futures were last down $6.10 an ounce at $1,205.40. December Comex silver was last down $0.21 at $14.60 an ounce.

The feature in the marketplace today is weakness in secondary market currencies versus the U.S. dollar. The Argentine peso hit a record low against the greenback and the Turkish lira is also under pressure today. The Brazilian real and Indian rupee are also solidly lower against the dollar. As the calendar turns to September next week, look for focus on secondary currencies and their countries’ problematic debt loads to become in keener focus among traders and investors. Any escalation in this situation would significantly spook the marketplace and likely prompt safe-haven demand for gold and silver.

World stock markets were mixed to lower overnight. U.S. stock indexes are pointed toward weaker openings, on mild profit taking after hitting record highs on Wednesday. The robust risk appetite in the marketplace this week has boosted world equities markets. Reports say the U.S. and Canada are close to agreeing on a trade deal, after the U.S and Mexico reached a deal on Monday. Optimism the U.S. will reach more trade agreements with its major trading partners has in part lifted world stock markets this week.

The key outside markets today find the U.S. dollar index moderately up on a corrective bounce after seeing losses this week. Meantime,Nymex crude oil prices are up, hit a six-week high today, and trading just below $70.00 a barrel.

Technically, gold bears still have the overall near-term technical advantage but a price downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at today’s high of $1,214.00 and then at this week’s high of $1,220.70. First support is seen at today’s low of $1,202.10 and then at $1,200.00. Wyckoff's Market Rating: 2.5

December silver futures bears have the 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 today’s high of $14,825 and then at $15.00. Next support is seen at the August low of $14.405 and then at $14.25. Wyckoff's Market Rating: 1.5.