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P.M. Kitco Roundup: Gold Ends Near Steady in Quiet Trading, as Fresh News Awaited

Monday September 9, 2013 2:08 PM

(Kitco News) - Gold prices ended the U.S. day session near unchanged in quiet activity Monday. A lack of fresh, bullish fundamental news limited buying interest. However, heightened geopolitical tensions limited the downside price pressure in gold. December Comex gold was last steady at $1,386.50 an ounce. Spot gold was last quoted down $2.00 at $1387.25. December Comex silver last traded down $0.166 at $23.725 an ounce.

There are still market jitters regarding a potential U.S. military strike against the Syrian regime. The G-20 meeting in Russia ended over the weekend. The main focus was President Obama’s efforts to line up support for U.S. military action against the Syrian regime. His efforts had mixed results at best. Obama will make a televised speech on the matter Tuesday. The U.S. Congress this week will also debate and likely vote on the issue. ¬†Russia has reportedly put forth a proposal for Syria to eliminate its chemical weapons to avoid a U.S. attack. The market place mainly worried about the reactions of other countries, such as Russia, China and Iran, should the U.S. take action. The Middle East remains a powder keg amid this latest development in the region.

In economic news, China during the weekend reported strong exports during August, at up 7.2% on an annualized basis. Strong Chinese import levels for August were also reported, at up 7.0% year on year. Consumer inflation in China rose 2.6% in August, year on year, which was in line with expectations. China industrial production figures are due out Tuesday. There was also strong GDP data coming out of Japan Monday. The upbeat Asian economic data is a bullish underlying factor for the precious metals markets.

Traders and investors are already looking ahead to next week’s meeting of the U.S. Federal Reserve’s Open Market Committee (FOMC). Last Friday’s weaker than expected U.S. jobs report did not really shed any fresh light on whether the Fed might start to “taper” its monthly bond-buying program sooner or later. Still, it appears a slight majority of the market place believes the U.S. central bank at next week’s meeting will announce it will begin to scale back its quantitative easing.

Technically, December gold futures prices closed near mid-range Monday. The gold market bulls still have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. A nine-week-old uptrend is still in place on the daily bar chart, but now just barely. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,434.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,350.00. First resistance is seen at Monday’s high of $1,395.00 and then at $1,400.00. First support is seen at Monday’s low of $1,381.90 and then at $1,373.60. Wyckoff’s Market Rating: 5.5

December silver futures prices closed near mid-range Monday. Silver bulls still have the slight near-term technical advantage, but need to show fresh power soon to keep it. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the August high of $25.16 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $23.00. First resistance is seen at $24.00 and then at Monday’s high of $24.25. Next support is seen at Monday’s low of $23.44 and then at last week’s low of $23.04. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 190 points at 328.05 cents Monday. Prices closed near mid-range. Copper bulls and bears are on a level near-term technical playing field. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the August high of 339.50 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 320.00 cents. First resistance is seen at 330.00 cents and then at last week’s high of 332.75 cents. First support is seen at today’s low of 325.90 cents and then at last week’s low of 322.00 cents. Wyckoff's Market Rating: 5.0.

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By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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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