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P.M. Kitco Roundup: Gold Ends Weaker, Hits 3-Month Low, on Bearish Outside Markets

Wednesday September 10, 2014 1:58 PM

(Kitco News) - Gold prices ended the U.S. day session lower and fell to another three-month low Wednesday. Early, tepid short covering gave way to more technical selling pressure as the session progressed. Also, the key “outside markets” were bearish for gold Wednesday, as the U.S. dollar index was firmer and crude oil prices were lower. The dollar index is hovering near a 14-month high, while Nymex crude oil futures hit a seven-month low Wednesday. December Comex gold was last down $1.90 at $1,246.60 an ounce. Spot gold was last quoted down $10.00 at $1,246.25. December Comex silver last traded up $0.045 at $18.965 an ounce.

It has not been an active week on the world economic reports front, which has kept many markets quieter. Traders and investors are already looking ahead to next week’s U.S. FOMC monetary policy meeting.

Things are also quieter on the geopolitical front this week. The Russia-Ukraine cease-fire is holding up. Reports Wednesday quoted the Ukrainian president as saying most Russian troops have now pulled away from the Russia-Ukraine border. This has added to a tone of increased investor risk appetite this week.

In overnight news, the German government auctioned 10-year notes for a record low yield of 1.05% Wednesday, and demand for the notes was very strong. The weak European Union economy and Euro currency, as well as recent geopolitical concerns, have boosted demand for the safer-haven German sovereign debt.

The London P.M. gold fix was $1,251.00 versus the previous London A.M. fixing of $1,254.25.

Technically, December gold futures prices closed near the session low and hit another three-month low Wednesday. Gold bears have the firm overall near-term technical advantage as a two-month-old downtrend is in place on the daily bar chart. 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 the June low of $1,241.70. First resistance is seen at $1,250.00 and then at Wednesday’s high of $1,258.50. First support is seen at Wednesday’s low of $1,244.50 and then at $1,241.70. Wyckoff’s Market Rating: 3.0

December silver futures prices closed near the session low Wednesday. Prices are hovering near Tuesday’s three-month low. A two-month-old downtrend is in place on the daily bar chart. The bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $19.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the June low of $18.70. First resistance is seen at Wednesday’s high of $19.125 and then at this week’s high of $19.345. Next support is seen at this week’s low of $18.89 and then at $18.70. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed up 85 points at 311.05 cents Wednesday. Prices closed near mid-range on short covering after hitting a 2.5-month low Tuesday. Copper bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at this week’s high of 320.95 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of 300.95 cents. First resistance is seen at today’s high of 312.00 cents and then at 315.00 cents. First support is seen at this week’s low of 309.20 cents and then at 307.50 cents. Wyckoff's Market Rating: 4.0.

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.
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