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Gold and Silver December Reports

December Gold

Gold has traded in a tight consolidation range of $5 overnight as traders and investors await Durable Goods data due out at 7:30 am CT. With this being the first to be delivered Gold will react to this alone initially. Durable Goods will be followed by Case Shiller Housing data at 8:00 am CT, Services PMI at 8:45 and Consumer Confidence at 9:00. Look for the data to move the market as it comes out and if the consensus of the three strongly beats we expect a move to the 1147.8 support level. Yesterday New Home Sales missed by a wide margin and Gold traded to a session high of 1169.6 and ran into retracement resistance at 1169 and was unable to hold gains; poor data today will keep Gold elevated. However, with tomorrow being the conclusion of the two day FOMC Meeting the surprise will be a more hawkish Fed than investors anticipate so we expect to see rallies stay in check. Today is also November option expiration and the 1150 CALLS actually have the most open interest, this could be a magnet if selling commences. The 200 day moving average comes in at 1176.2 and only a close above here will spark further buying.
Resistance – 1169**, 1176.6**, 1180.1-1181.4**, 1190.1***, 1203.1**, 1217.8**
Support – 1158.1-1161.4**, 1152*, 1147.8**, 1141.3*, 1137.4-1138.4**, 1129.6-1131.4***


Silver (December)

Brutally quiet start to the week for the silver market as options expiration comes and goes today.  Options expirations have had virtually zero impact on the precious metals markets over the last six months or so.  Mostly due to the fact that the markets aren’t really trending.  Traders begin turning their focus towards tomorrow’s FOMC statement.  It seems pretty obvious to us that there’s no prayer of the Fed raising rates but, if nothing else, will provide an excuse for the market to move.  Overall the market still remains sideways/bullish however each day that passes without a breakout higher, the heavier the market feels.  First key resistance comes in at 16.36*** and only a close above this level confirms a long term sea change.  First support comes in at 15.33*** and 14.80*** is the line in the sand level. 
Resistance –15.97**, 16.36***, 16.85**
Support –15.33***, 15.07** 14.80***

William Baruch



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