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P.M. Kitco Metals Roundup: Gold Ends Steady-Weak in More Lackluster, Pre-Holiday Trading

Wednesday November 26, 2014 2:02 PM

(Kitco News) - Gold prices ended the U.S. day session steady to slightly lower in quiet, pre-holiday trading Wednesday. A dearth of bullish fundamental news recently and a bearish chart posture are keeping gold prices on the defensive. Some chart consolidation is also evident this week. February Comex gold was last up $0.40 at $1,198.20 an ounce. Spot gold was last down $3.10 at $1,198.50. March Comex silver last traded down $0.016 at $16.595 an ounce.

U.S. trading activity wound down as the day progressed Wednesday, ahead of the Thanksgiving holiday on Thursday. Typically, Friday finds one of the lightest-volume trading days of the year for U.S. markets.

A fairly heavy slate of U.S. economic data released Wednesday did not move the markets much, as U.S. traders had their minds on a Thanksgiving feast Thursday.

In overnight news, a European Central Bank official hinted the ECB could begin buying government bonds (quantitative easing) early in 2015.  The ECB vice president’s remarks were a bit disappointing to those market watchers who thought the ECB might make the move at its meeting on Dec. 4.

A German government 10-year bond auction Wednesday fetched a record low yield that averaged 0.74%. This underscores investors in Europe continue to be skittish about the European Union economy and are content to be safe with low-yielding German bonds.

The market place is looking ahead to Thursday’s OPEC meeting. Some believe the beleaguered oil cartel could reduce its overall daily oil production quota, or at least call for strict adherence to existing quotas, most of which are ignored by OPEC nations. Nymex crude oil futures are trading not far above the recent three-year low. This could be a “make-or-break meeting for OPEC—or at least its most important meeting in years. Saudi Arabia and Iran will be the key players at the OPEC meeting.

There was another report out Wednesday that said demand for physical gold in China and India continues to increase, most likely due to bargain hunters snapping up gold due to the recent price slide.

The London P.M. gold fix was $1,197.50 versus the previous London A.M. fixing of $1,195.75.

Technically, February gold futures prices closed near mid-range again today in quiet trading. Bears still have the overall near-term technical advantage. Prices are in a 4.5-month-old downtrend on the daily bar chart. However, the bulls are working on establishing a near-term uptrend from the November low. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,225.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,174.70. First resistance is seen at this week’s high of $1,204.50 and then at last week’s high of $1,208.20. First support is seen at this week’s low of $1,190.00 and then at $1,186.70. Wyckoff’s Market Rating: 3.0

March silver futures prices closed nearer the session low in quiet trading. The silver bears still have the overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. However, the bulls are working on establishing a near-term price uptrend from the November low. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $15.93. First resistance is seen at this week’s high of $16.755 and then at $17.00. Next support is seen at this week’s low of $16.305 and then at $16.16. 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.
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