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A.M. Kitco Metals Roundup: Gold Solidly Higher On Short Covering, Bargain Hunting

Friday December 26, 2014 8:16 AM

(Kitco News) - Gold is posting good price gains in early U.S. trading Friday, on short covering from the futures side and bargain hunting in both cash and futures. Thin, post-holiday trading conditions are likely exacerbating the bigger daily price move. Many traders and investors have checked out for the week, if not for the rest of the year. February Comex gold was last up $21.30 at $1,194.80 an ounce. Spot gold was last up $17.90 at $1,195.25. March Comex silver last traded up $0.475 at $16.185 an ounce.

Markets were mostly quiet in overnight dealings, on the day after the Christmas holiday. There were no major, markets-moving news events over the Christmas holiday. Trading volumes in many U.S. markets on Friday could be the lightest of the year, especially since there are no major U.S. economic reports due for release. London markets were closed for a holiday Friday.

The key “outside markets” (crude oil and the U.S. dollar index) were both modestly higher in early trading. U.S. stock indexes were pointed toward firmer openings Friday.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Wyckoff’s Daily Risk Rating: 5.5 (Geopolitical risk assessment is low but risks have not evaporated.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 10, with 1 being least risk-averse (most risk-on) and 10 being the most risk-averse (risk-off), and 5 being neutral.

Technically, gold bears possess the overall near-term technical advantage. The gold bulls’ next upside ear-term price breakout objective is to produce a close above solid technical resistance at $1,225.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at this week’s low of $1,170.70. First resistance is seen at $1,200.00 and then at $1,210.00. First support is seen at $1,185.00 and then at $1,180.00.

March silver futures bears have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the December high of $17.355 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.50. First resistance is seen at the overnight high of $16.305 and then at $16.50. Next support is seen at $16.00 and then at the overnight low of $15.765.

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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