EDITOR'S NOTE: Don't Miss a Beat! Sign-up for the Kitco News Weekly Roundup– our newsletter highlighting our most popular features, articles and videos! Register Here

P.M. Kitco Roundup: Gold Down, Pressured by Surging U.S. Dollar

Wednesday September 24, 2014 2:10 PM

(Kitco News) - Gold prices ended the U.S. day session moderately lower Wednesday. A rally in the U.S. dollar index to a four-year high has been a major bearish “outside market” factor working against gold and silver. Also, the continued bearish technical postures for both gold and silver are allowing the sellers to remain in control. The pop in gold prices Tuesday, due to U.S. air strikes against ISIS terrorists, was short-lived. December Comex gold was last down $4.50 at $1,217.30 an ounce. Spot gold was last quoted down $6.10 at $1,217.25. December Comex silver last traded down $0.119 at $17.66 an ounce.

Trader and investor nervousness in the market place waned Wednesday following this week’s U.S. airstrikes that hit ISIS terrorists at several locations in Iraq and Syria. World stock markets had seen some selling pressure on the news, but not anything close to a panic. Any escalation in this situation or in other geopolitical hotspots in the world would prompt increased investor anxiety, which would be stock-market bearish, and bullish for safe-haven assets like gold and U.S. Treasury bonds and notes.

In overnight news, Germany’s Ifo business confidence survey came in below expectations, at 104.7 in September versus expectations of a reading of 105.8. The figure was the lowest since April of 2013. The dour German economic data is yet another clue that the European Union’s collective economy is teetering on recession. European Central Bank president Mario Draghi reiterated Wednesday the EU will see very accommodative monetary policy for “a long time.”

The World Bank said Wednesday that Russia will see significantly slower economic growth in the coming months, due to sanctions imposed by other nations. The report said Russia would still likely eke out slight economic growth to just avoid recession the next couple years.

U.S. economic data released Wednesday included the weekly MBA mortgage applications survey, new residential sales, and the weekly DOE liquid energy stocks report. The data did not significantly impact the metals markets.

The London P.M. gold fix was $1,217.25 versus the previous London A.M. fixing of $1,224.00.

Technically, December gold futures prices closed nearer the session low Wednesday. Prices Monday dropped to a nearly nine-month low. Gold bears have the firm overall near-term technical advantage as a 2.5-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 last week’s high of $1,243.20. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,200.00. First resistance is seen at Wednesday’s high of $1,226.70 and then at $1,230.00. First support is seen at Tuesday’s low of $1,214.70 and then at this week’s low of $1,208.00. Wyckoff’s Market Rating: 1.5

December silver futures prices closed near mid-range Wednesday. Prices hit a contract and four-year low on Monday. A 2.5-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 last week’s high of $18.885 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at Wednesday’s high of $17.87 and then at this week’s high of $17.99. Next support is seen at Wednesday’s low of $17.51 and then at this week’s contract low of $17.325. Wyckoff's Market Rating: 1.0.

December N.Y. copper closed up 190 points at 305.40 cents Wednesday. Prices closed nearer the session high on short covering after hitting a 13-week low early on. 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 312.50 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 Wednesday’s high of 306.35 cents and then at this week’s high of 308.60 cents. First support is seen at Wednesday’s low of 302.30 cents and then at 300.95 cents. Wyckoff's Market Rating: 3.0.

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.
kitco news

Precious Metal Charts

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

Interactive Chart