Gold Down amid Bearish Outside Markets and as Risk Appetite Returns to Marketplace
Wednesday November 25, 2015 13:54
(Kitco News) - Gold prices ended a quieter U.S. day session modestly lower, pressured by bearish outside markets on this day that saw the U.S. dollar index higher and hit a seven-month high. Nymex crude oil prices were weaker and trading not far above this week’s three-month low. A “risk-on” trading day in the marketplace also worked against the safe-haven gold market. February Comex gold was last down $4.20 at $1,069.10 an ounce. March Comex silver was last down $0.068 at $14.12 an ounce.
The tensions surrounding the Turkey military downing a Russian warplane on Tuesday subsided Wednesday, as there was very little risk aversion in the marketplace. However, Russian President Vladimir Putin is waging a war of words with Turkey and says his country will retaliate. NATO officials are trying to play down the matter. Gold did see a very modest safe-haven bounce Tuesday, on the news. Most do not expect this situation to escalate into more military action.
While trading was slower during the U.S. day session Wednesday, due to the U.S. Thanksgiving holiday on Thursday, there was a very heavy slate of U.S. economic data out. The data was a mixed bag and the precious metals saw no significant price reactions to the data.
Friday it is typically one of the slowest trading days of the year.
Technically, February gold futures prices closed nearer the session low. The gold bears have the solid overall near-term technical advantage as prices hover near the recent 5.5-year low. Gold prices are in a steep six-week-old downtrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,098.00. Bears' next near-term downside price breakout objective is pushing prices below solid longer-term technical support at 1,050.00. First resistance is seen at this week’s high of $1,080.50 and then at $1,087.30. First support is seen at this week’s low of $1,065.40 and then at the contract low of $1,062.40. Wyckoff’s Market Rating: 1.0
March silver futures prices closed near mid-range. The silver market bears have the solid overall near-term technical advantage. Prices are in a steep four-week-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $14.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at this week’s high of $14.30 and then at last week’s high of $14.44. Next support is seen at today’s low of $14.03 and then at the contract low of $13.89. Wyckoff's Market Rating: 1.5.
March N.Y. copper closed down 220 points at 204.70 cents today. Prices closed nearer the session low. Copper bears have the solid overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 220.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 200.00 cents. First resistance is seen at this week’s high of 208.35 cents and then at 210.00 cents. First support is seen at the contract low of 200.20 cents and then at 197.50 cents. Wyckoff's Market Rating: 1.5.
By Jim Wyckoff, contributing to Kitco News; firstname.lastname@example.org
Follow me on Twitter @jimwyckoff