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 Metals Roundup: Gold Gains On Safe-Haven Buying, Lower U.S. Dollar Index
Tuesday January 27, 2015 1:53 PM
(Kitco News) - Gold prices ended the U.S. day session solidly higher Tuesday, on more safe-haven demand as the U.S. stock market sold off following some downbeat quarterly earnings reports. A sharply lower U.S. dollar index on this day was also positive for the precious metals markets. February Comex gold was last up $13.80 at $1,293.10 an ounce. Spot gold was last up $11.70 at $1,293.50. March Comex silver last traded up $0.112 at $19.095 an ounce.
Just before the opening Tuesday companies like Caterpillar, Procter & Gamble, and Microsoft issued weaker-than-expected earnings reports. There was a heavy slate of U.S. economic data out Tuesday that included durable goods orders, the S&P/Case-Shiller home price index, the U.S. flash services PMI, the consumer confidence index, and new residential sales. The data was a mixed bag and had little collective impact on the markets.
New York City missed the major impact of a massive winter storm that is pummeling the northeastern U.S. Tuesday. However, some New York-based markets’ trading volumes were a bit thinner due to the storm.
The regular meeting of the U.S. Federal Reserve’s Open Market Committee (FOMC) began on Tuesday and ends Wednesday afternoon. Traders will look for clues coming from that meeting, regarding when the U.S. central bank will begin to raise interest rates. Recent developments, including plunging crude oil prices, have led many to believe the Fed might not raise interest rates until late this year, or may have to wait until 2016.
Following the weekend news that saw the Greek anti-austerity party win elections by a wider-than-expected margin, the market place was not roiled. However, the Syriza party’s victory raises more concerns about the viability of the European Union, longer-term. The new leftist Greek prime minister has said he will work to abolish austerity measures that he claims have hampered the Greek population. This matter will likely be close to the front burner of the market place in the coming weeks and months.
The currency markets are still turbulent. The Swiss franc was volatile Tuesday after a Swiss National Bank official said the SNB could still intervene to deflate the Swissy.
The Russian ruble faced more downside pressure against world currencies Monday, following news that Standard & Poors downgraded Russia’s sovereign credit rating to junk status. Recent fighting in Ukraine and the threats of more sanctions against Russia coming from the U.S. and European Union have also hit the ruble hard to the downside. The ruble had stabilized, at least for the moment, Tuesday. The Euro currency saw a short-covering bounce Tuesday after hitting an 11-year low Monday. The U.S. dollar index was lower Tuesday and saw profit taking after hitting a 12-year high Monday.
Noted bond market investor Jeff Gundlach reportedly said today he has increased the amount of gold in his portfolio.
The London P.M. gold fixing is $1,288.50 versus the previous A.M. fixing of $1,279.00.
Technically, February gold futures prices closed nearer the session high today. The gold bulls have the near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Their next upside near-term price breakout objective is to produce a close above solid technical resistance at the August 2014 high of $1,323.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,256.20. First resistance is seen at $1,300.00 and then at last week’s high of $1,307.80. First support is seen at $1,280.00 and then at today’s low of $1,272.00. Wyckoff’s Market Rating: 6.5
March silver futures prices closed nearer the session high and were supported on technical buying and the weaker U.S. dollar index. Silver bulls have the near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.355. First resistance is seen at today’s high of $18.215 and then at last week’s high of $18.505. Next support is seen at $17.63 and then at today’s low of $17.405. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed down 795 points at 246.35 cents today. Prices closed nearer the session low today and closed at a contract and multi-year low close. The copper market bears have the solid overall near-term technical advantage. Prices are in a six-month-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 265.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 235.00 cents. First resistance is seen at 250.00 cents and then at today’s high of 254.35 cents. First support is seen at today’s low of 244.60 cents and then at the contract low of 241.90 cents. Wyckoff's Market Rating: 1.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
 |
Discuss on Kitco Forums
