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P.M. Kitco Metals Roundup: Gold Gets Modest Lift From Safe-Haven Demand, Corrective Bounce And Bullish Outside Markets

Monday February 9, 2015 2:18 PM

(Kitco News) - Gold prices ended the U.S. day session modestly higher Monday, on some safe-haven demand and by an upside technical correction following Friday’s strong losses that pushed prices to a three-week low. The key “outside markets” were also in a bullish posture for the precious metals Monday, as the U.S. dollar index was  lower and crude oil prices were solidly higher. April Comex gold was last up $6.90 at $1,241.50 an ounce. March Comex silver last traded up $0.351 at $17.045 an ounce.

It was a “risk-off” day in the market place Monday. Concerns have increased markedly regarding Greece’s future within the European Union. Greek Prime Minister Tsipras now says he will not accept any extension of Greece’s heretofore agreed upon bailout package but instead wants a bridge loan. This news sunk the Greek stock market and Greek bond yields rose. Other European stock markets also felt selling pressure from the Greece news. EU watchers are wondering if Greece will exit the European Union as soon as the end of the month, but that’s certainly not the consensus view.

Asian shares were under selling pressure Monday on a bearish economic report coming out of the region’s economic leader. China’s exports and imports were reported at surprising declines in January. Exports were down 4.9% and imports were down a whopping 21.4%, year-on-year. This news was a bearish underlying factor for the raw commodity sector.

On the geopolitical front, the U.S. and key European nations are trying to keep a unified stance on the crisis between Russia and Ukraine. Meetings on the matter this week could prove crucial, but Russia appears to be unwilling to budge on its hard-line stance.

The London P.M. gold fix was $1,238.50 versus the previous A.M. fixing of $1,242.25.

Technically, April gold futures prices closed nearer the session high today. The bears now have the near-term technical advantage. A 2.5-month-old uptrend on the daily bar chart was negated Friday and a fledgling downtrend is now in place. 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 price breakout objective is closing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,243.60 and then at $1,250.00. First support is seen at today’s low of $1,234.40 and then at last week’s low of $1,228.20. Wyckoff’s Market Rating: 4.0

March silver futures prices closed nearer the session high today and saw a short-covering bounce following Friday’s losses. Silver bears now have the near-term technical advantage. A 2.5-month-old uptrend on the daily bar chart was negated Friday and a fledgling downtrend is now in place. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the January high of $18.505 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $17.145 and then at Friday’s high of $17.37. Next support is seen at today’s low of $16.685 and then at last week’s low of $16.545. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed down 25 points at 258.30 cents today. Prices closed nearer the session high. The key “outside markets” were bullish for copper today—lower U.S. dollar index and sharply crude oil prices. Yet, copper could not benefit, which is another bearish near-term clue. The copper market bears have the firm overall near-term technical advantage as 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 275.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the contract low of 241.90 cents. First resistance is seen at last week’s high of 261.85 cents and then at 263.60 cents. First support is seen at 253.35 cents and then at 250.00 cents. Wyckoff's Market Rating: 2.5.

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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