(Kitco News) - Gold and silver prices are sharply down and near their daily lows in early-afternoon U.S. trading Monday. Gold notched a nearly 1.5-year low and fell below key technical support at $1,200.00, while silver scored a two-year low. A surging U.S. dollar index and solidly lower crude oil prices were pressuring the precious metals. December gold futures were last down $17.10 an ounce at $1,202.00. September Comex silver was last down $0.24 at $15.055 an ounce.
It's was a risk-off day in the world marketplace today. Global stock markets were lower as currency markets are roiled again today, with focus on a crumbling Turkish lira and that country's financial troubles. The Lira was down as much as 10% today following sharp losses last week. Turkey's government has so far done or said little to stem the drop in the lira. The Indian rupee, South African rand and Mexican peso are included in those secondary currencies also getting hit hard today by an appreciating U.S. dollar. The U.S. dollar index rose to another 13-month high today, on safe-haven demand. The marketplace is worried about the Turkish lira's severe depreciation expanding into a contagion of secondary world currencies.
Frustrating for the gold and silver market bulls is the fact their metals are getting no benefit from safe-haven demand amid the keener uncertainty in the world marketplace.
Meantime, Nymex crude oil futures are trending lower and hit a nearly seven-week low of $65.91 a barrel. Oil is arguably the leader of the raw commodity sector, and when it has big down days, other commodity markets are dragged down, too.
There was no major U.S. economic data released Monday.
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 $15.00. First resistance is seen at today' high of $15.345 and then at $15.50. Next support is seen at $15.00 and then at $14.75. Wyckoff's Market Rating: 1.0.