EDITOR'S NOTE: Catch the all new Kitco.com Market Data and Bitcoin sections!

P.M. Kitco Roundup: Gold Sees Profit-Taking, Corrective Pullback As Market Place Perceives Easing Ukraine Tensions

Tuesday March 4, 2014 1:48 PM

(Kitco News) - Gold prices ended the U.S. day session lower Tuesday, as the shorter-term traders took some profits and the market saw a downside technical correction from recent gains that on Monday saw gold hit a four-month high. A slight de-escalation in the Ukraine crisis also put some risk appetite back into the market place Tuesday. April gold was last down $12.30 at $1,338.00 an ounce. Spot gold was last quoted down $12.30 at $1,338.50. May Comex silver last traded down $0.258 at $21.19 an ounce.

Traders and investors on Tuesday perceived the situation regarding the Russian military invasion of Crimea and the civil unrest in Ukraine has de-escalated a bit Tuesday, which put some risk appetite back into the world market place. This is likely due to reports Russian President Vladimir Putin has halted his military exercises near the Ukrainian border and ordered troops there back to their bases. However, Russian troops are still on the ground in the Crimea region of Ukraine and this situation is still fluid and could escalate quickly. And the matter of Ukraine being in civil disarray and near financial collapse has not changed the past 24 hours.

U.S. Secretary of State John Kerry lambasted the Russians for their “aggression” at his press conference Tuesday. The U.S. is already taking action on economic and diplomatic sanctions against Russia. Russian officials fired back by saying any sanctions against them will see retaliation from Russia. Economic sanctions levied against an already unstable Russian economy would have major ramifications for Russia and those world companies that deal with Russia. Ukraine and the Black Sea region are rich in natural resources and the Black Sea is a major export hub. Any military conflict in the region would very likely disrupt shipping of any commodity coming out of the Black Sea.

In other news overnight, producer prices in the European Union fell 0.3% in January, and were down 1.3% year-on-year. That’s the largest year-on-year drop in producer prices in the Euro zone in over four years. The report underscores there should still be concern in the market place about deflationary price pressures in the European Union.

U.S. economic data released Tuesday was light and had no impact on the market place. The data-point pace picks up as the week progresses. The big economic news of the week will be the European Central Bank’s monthly monetary policy meeting on Thursday and the U.S. monthly employment report on Friday.

The London P.M. gold fix is $1,334.75 versus the previous P.M. fixing of $1,349.50.

Technically, April gold futures prices closed nearer the session low Tuesday on a corrective pullback from recent gains that saw prices Monday hit a four-month high. A two-month-old uptrend is still in place on the daily bar chart. Bulls still have the 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 $1,360.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,318.70. First resistance is seen at last week’s high of $1,345.60 and then at this week’s high of $1,355.00. First support is seen at this week’s low of $1,330.70 and then at $1,325.00. Wyckoff’s Market Rating: 6.0

May silver futures prices closed near mid-range Tuesday. The bulls have lost their slight near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the February high of $22.215 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $20.63. First resistance is seen at Tuesday’s high of $21.54 and then at this week’s high of $21.74. Next support is seen at last week’s low of $21.025 and then at $20.63. Wyckoff's Market Rating: 5.0.

May N.Y. copper closed up 395 points at 321.15 cents Tuesday. Prices closed nearer the session high and saw short covering in a bear market. Prices remain in a choppy nine-week-old downtrend on the daily bar chart. Bears still have the near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 326.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of 315.00 cents. First resistance is seen at Tuesday’s high of 322.20 cents and then at 324.00 cents. First support is seen at 320.00 cents and then at 317.75 cents. Wyckoff's Market Rating: 3.5.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff

 

 

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