Editor's note: Watch The Latest Kitco Video News!!

P.M. Kitco Roundup: Comex Gold Ends Weaker As Outside Markets Turn Bearish—Firmer USDX, Lower Oil

Wednesday November 27, 2013 2:10 PM

(Kitco News) - Comex gold futures prices lost their early gains and ended the U.S. day session slightly lower Wednesday. The key “outside markets” turned bearish for the precious metals as the trading session progressed. The U.S. dollar was lifted by some upbeat U.S. economic data, while crude oil sold off on a bearish weekly U.S. energy stocks report. February gold was last down $2.70 at $1,238.80 an ounce. Spot gold was last quoted down $2.60 at $1240.00. March Comex silver last traded down $0.173 at $19.72 an ounce.

While it was a somewhat quieter market place Wednesday, in a pre-holiday trading atmosphere (the U.S. Thanksgiving holiday is on Thursday) it was a very busy day for U.S. economic data. The data was a mixed bag, but tilted toward the upbeat side, and that gave the greenback a lift. When the dollar index moved higher, gold prices started to lose altitude.

There was an “incident” earlier this week when U.S. military planes purposely flow over some islands in the East China Sea, which China now claims as its own, but Japan also claims it owns. China had just sent out a dispatch saying those islands were now under its airspace watch. This news may be part of the reason the safe-haven gold market got a lift in overnight trading Wednesday. The world is awaiting China’s response to the U.S. military’s move.

Focus of traders and investors is already turning to December, when the European Central Bank and U.S. Federal Reserve hold their next monetary policy meetings. The market place for many weeks has been preoccupied with the precise timing of when the Fed will alter its monetary policy and back off from its monthly bond-buying program—called quantitative easing. Meantime, the ECB has just eased its monetary policy and the market place is wondering what ECB president Mario Draghi will have up his sleeve at the early-December ECB meeting. The European Union is presently battling very low inflation that could turn into dreaded deflation.

The London P.M. gold fix is $1,245.00 versus the previous P.M. fixing of $1,247.50.

Technically, February gold futures closed near the session low. Gold prices are in a four-week-old downtrend on the daily bar chart. The gold market bears have the solid overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,200.00. First resistance is seen at $1,250.00 and then at this week’s high of $1,258.20. First support is seen at this week’s low of $1,226.40 and then at $1,220.00. Wyckoff’s Market Rating: 2.5

March silver futures closed near the session low and closed at a fresh four-month-low close Wednesday. Silver bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $20.60 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of $19.29. First resistance is seen at $20.00 and then at this week’s high of $20.35. Next support is seen at this week’s low of $19.62 and then at $19.50. Wyckoff's Market Rating: 2.0.

March N.Y. copper closed down 280 points at 319.10 cents Wednesday. Prices closed nearer the session low. The key “outside markets” turned bearish for the copper market, as the U.S. dollar index firmed up and crude oil prices sold off. Bears have the near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 330.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of 313.50 cents. First resistance is seen at Wednesday’s high of 323.35 cents and then at 325.00 cents. First support is seen at Wednesday’s low of 318.00 cents and then at 315.00 cents. Wyckoff's Market Rating: 4.0.

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, 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.
kitco news

Precious Metal Charts

Click to see this Precious Metal chart
  1. 24h
  2. 30D
  3. 60D
  4. 6M
  5. 1Y
 

Interactive Chart