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Market Nuggets: Comex Gold Slides; Technicals, Economic Worries, Large Seller, Liquidation Cited

Thursday November 15, 2012 10:42 AM

Comex gold futures fell to their lowest level in a week. Some profit-taking appeared to set in after a recent post-election uptick in prices, perhaps in response to recession concerns after weak economic data in the U.S., with Europe and Japan also in a slowdown, says Sterling Smith, futures specialist with Citi Institutional Client Group. “I would note we have recovered pretty nicely off of the worst levels of the day and likely we’ll see bargain hunting come in,” he says. Smith says he looks for gold to retain a bullish posture, “but bull markets don’t move in straight lines.” Daniel Pavilonis, commodities broker with RJO Futures, also looks for the dip to be used as a buying opportunity. As for the decline, an apparent large seller has appeared three days in a row at around the same time, says Jim Comiskey, senior account executive with Archer Financial Services. “A big fund has come in at like 3 minutes after 9 (Central time) and unloaded size in the silver and gold,” he says. Based on the trend over the last couple of days in the total number of Comex open positions, this may be liquidation-type selling, he adds. George Gero, precious-metals strategist with RBC Capital Markets Global Futures, reports that sell stops were hit on the decline. As of 10:31 a.m. EST, December gold was $17.70 lower to $1,712.40 an ounce although up from a $1,704.50 low. The market fell below the 10- and 20-day moving averages that were both around the $1,715 area.

By Allen Sykora of Kitco News; asykora@kitco.com


Market Nuggets: Kingsview’s Nedoss: Comex Gold Support Holds At 10-, 20-Day Averages

Thursday November 15, 2012 9:37 AM

Comex gold has pared its earlier losses on technical factors and in reaction to softer U.S. economic data, says Charles Nedoss, senior market strategist with Kingsview Financial. The metal was pressured overnight by a stronger U.S. dollar index. “You saw a test of the 10- and 20-day moving averages,” Nedoss says of gold. However, the precious metal held the levels, which are at $1,715.30 and $1,714.70, respectively. December gold put in a low of $1,715.50 “and found pretty good support,” Nedoss says. The uptick came after softer U.S. economic data that included an 18-month high in initial jobless claims, although much of this was seen as the result of Hurricane Sandy. As of 9:33 a.m. EDT, December gold was $7.20 softer at $1,722.90 an ounce.  

By Allen Sykora of Kitco News; asykora@kitco.com


Market Nuggets: Nymex Platinum Slides As Striking Amplats Workers Return To Work

Thursday November 15, 2012 8:53 AM

Platinum has fallen more than other precious and base metals as of early New York activity. One trader cites news reports that striking miners have returned to work at Anglo American Platinum after accepting the company's latest offer in a strike that has lasted weeks. A number of strikes in the sector have enabled platinum to rise since August, but this was the last one at a major platinum producer. Another trader says buying finally ran out of momentum after a run-up since earlier this week when Johnson Matthey issued its Platinum 2012 Interim Review seen as bullish after showing that the market is swinging to a supply deficit this year from a surplus in 2011, largely due to the South African issues. Nymex January platinum had rallied roughly 3% from the low on Monday, prior to the overnight release of the report, to Thursday's high. As of 8:45 a.m. EST, January platinum was $16.60, or 1%, lower to $1,575 an ounce.

By Allen Sykora of Kitco News; asykora@kitco.com


Market Nuggets: Ira Epstein Sees Crosswinds For Gold Market

Thursday November 15, 2012 8:34 AM

There are a number of crosswinds for the gold market, says Ira Epstein, director of the Ira Epstein division of The Linn Group. Israel is likely to become engaged in more warfare after killing a senior Hamas leader, he says. "Whether Iran somehow joins with Hamas directly on an attack against Israel is not something I think will happen, but if they did, it would be bullish gold," he says. "The more likely scenario is that Iran backs Hamas in terms of missiles but not with Iranian soldiers on the ground." All eyes will be on Congress over the U.S. fiscal cliff issue. He says Republicans are ultimately strike a deal, particularly since they are likely to be blamed if the U.S. slips back into recession over the issue. "Therefore, I expect a compromise, which is not in my opinion bullish for gold," Epstein says. Meanwhile, Greece's debt issues remain at the forefront, with some differences between the International Monetary Fund and European Union. Epstein describes himself as bullish but concerned that gold could be vulnerable to more price correction, based on technical analysis of a daily price chart. "I am also looking at the divergence between gold and stock indices, which hasn't recently taken place but is now occurring," he adds. He concludes: "I see gold as a fluid market, one I want to get long, but not just yet."

By Allen Sykora of Kitco News; asykora@kitco.com


Market Nuggets: Ironbeam's Lusk: Gold Buying Likely On Pullbacks To $1,700 and Below

Thursday November 15, 2012 8:08 AM

Ironbeam precious-metals analyst Sean Lusk looks for buying to emerge in gold on any retreats to the $1,700 area down to the low for the month. In a research note, he cites expectations for more emerging-market central-bank demand for the metal, including China. Meanwhile, there is potential for gridlock in Washington over the so-called U.S. "fiscal cliff" issue. With this backdrop, "I think that gold will be one of the choices of investment for investors going forward." Lusk says. He adds: "If we see a dip in gold down to the $1,700 level or if the price dips to challenge the monthly low at $1,673, I think it will represent a buying opportunity for investors as we head into 2013."

By Allen Sykora of Kitco News; asykora@kitco.com


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