Gold and Silver Market Commentary For Tuesday Afternoon

Gold futures closed down 8.00 an ounce at $1,868.70 today. Prices closed nearer the session low today after hitting a fresh all time record high of $1,923.70 in overnight trading. Profit taking pressure was featured as the day wore on. A stronger U.S. dollar index and lower crude oil prices were also bearish factors for gold today. The fact that U.S. stock indexes had moved well off their daily lows by the time gold closed was also negated for the precious yellow metal.

Silver futures closed down $1.244 an ounce at $41.825 today. Prices closed nearer the session low today. Silver was pressured by bearish "outside markets" today that included a stronger U.S. dollar index and lower crude oil futures prices. The silver bulls still have the overall near term technical advantage. Prices are still in a choppy, two month old uptrend on the daily bar chart.

The U.S. stock indexes closed weaker today but well up form the session lows. Last Friday morning's very week U.S. jobs report has sunk the indexes. Key for the stock index bulls is to hold prices above the August lows. If they can do that, then those lows will likely mark major lows. If U.S. stock indexes drop below the August lows, then fresh, serious chart damage would be inflicted to suggest a fresh leg down in prices in the near term. Trading action in the stock indexes this week will be extra important.


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