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(Kitco News) -Comex gold and silver futures prices are trading moderately higher Wednesday morning, on corrective rebounds following recent selling pressure. Higher crude oil prices and a weaker U.S. dollar index are supporting gains in the precious metals, as better investor risk appetite has at least temporarily returned to the market place. Traders are again closely watching developments coming out of Greece Wednesday morning. As a parliamentary vote on austerity measures is awaited and is likely to pass, protestors have again taken to the streets in Athens. August gold last traded up $7.90 an ounce at $1,508.10. Spot gold last traded up $5.50 an ounce at $1,508.00. July Comex silver last traded up $0.722 at $34.36 an ounce. The Greek parliament is set to soon vote on very unpopular austerity measures while there is rioting in the streets of Athens. The market place is expecting parliament passage of the measures and is at least temporarily brushing off the protests, which news reporters on the scene say are smaller than Tuesday's. European Union, International Monetary Fund and Greek officials last week agreed upon a rescue plan for Greece, and that plan and austerity measures need to be approved by the Greek parliament before the aid plan goes into effect. Stronger protesting and violence in Greece, after the vote takes place, would produce more fear in the market place, which could then spill over into a debt contagion developing in the European Union, or even beyond. That could prompt stronger safe-haven investment demand for the precious metals. The U.S. dollar index is trading weaker Wednesday morning as the greenback bulls are fading again, as the Euro currency rallies on the expected affirmative Greek parliament vote on austerity measures. The greenback would likely benefit from any serious escalation in the Greek unrest. The dollar index remains in an overall technically bearish posture, which is an underlying bullish factor for gold and silver. Crude oil prices are trading higher early Wednesday on the better risk appetite in the market place. Crude oil bulls have also gained some fresh upside near-term technical momentum as prices moved above $94.00 a barrel on Wednesday. If crude can continue to recover from this week's six-month low that would also be a bullish underlying factor for the metals. U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the pending home sales index and the weekly DOE energy stocks report. The London A.M. gold fixing was $1,506.00 versus the previous P.M. fixing of $1,499.00. Technically, August Comex gold futures prices are seeing some short covering and bargain hunting after prices Monday hit a five-week low that did produce some near-term chart damage. Importantly, gold bulls still have the overall near-term and longer-term technical advantage. Prices are still in a 10-year-old uptrend on the longer-term charts. Bulls' next near-term upside technical objective is to produce a close above strong technical resistance at $1,530.00. Bears' next near-term downside price objective is closing prices below solid technical support at the May low of $1,464.10. First resistance is seen at the overnight high of $1,511.20 and then at $1,520.00. First support is seen at $1,500.00 and then at Tuesday's low of $1,495.50. July silver futures prices futures have also seen some near-term chart damage recently. Silver bulls still have the longer-term technical advantage. However, prices are in a four-week-old downtrend on the daily bar chart. The next downside price breakout objective for the bears is closing prices below solid technical support at the May low of $32.30. Bulls' next upside price objective is producing a close above solid technical resistance at last week's high of $36.77 an ounce. First resistance is seen at $34.50 and then at $35.00. Next support is seen at the overnight low of $33.85 and then at this week's low of $33.38. You need to follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It's free, too. My account is @jimwyckoff . By Jim Wyckoff of Kitco News; jwyckoff@kitco.com |
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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication |
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A.M. Kitco Metals Roundup: Comex Gold, Silver Up amid Weaker U.S. Dollar Index, Higher Crude Oil Prices 29 June 2011, 08:00 a.m. |