(Kitco News) – Gold prices are solidly lower in late-morning U.S. trading Wednesday, and hit a fresh four-week low. Overnight selling pressure was accelerated at the U.S. Comex futures opening, when sell stop orders were triggered as prices moved below near-term technical support levels. December gold futures have also moved below the important 50-day moving average, which has emboldened some chart-based bears. However, December gold prices breached the 50-day moving average in April, May and June–only to bounce back to set a new high for the year in July. More importantly, a near-term price downtrend is developing on the daily bar chart, from the July high of $1,384.40, basis December futures.
The key “outside markets” are also in a bearish posture for the precious metals markets on this day, as the U.S. dollar index is higher and crude oil prices are lower.
December gold futures were last down $17.00 an ounce at $1,329.00.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
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