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Gold Weaker as Firmer U.S. Dollar Index Trumps Higher Crude Oil Prices

(Kitco News) - Gold prices ended the U.S. day session modestly lower in quiet trading activity Wednesday. The key “outside markets” were mixed on this day, but the stronger U.S. dollar index (bearish) won out over higher crude oil prices (bullish) as the precious metals could not find much buying interest. Also, a lack of major, markets-moving fundamental news this week is allowing the chart-based traders to dominate, and the technicals for gold and silver remain overall bearish. February Comex gold was last down $5.60 at $1,068.50 an ounce. March Comex silver was last down $0.034 at $14.28 an ounce.

World stock markets were mostly higher Wednesday, boosted in part on rebounds in commodity-related stocks. Japan markets were closed for a holiday. A batch of U.S. economic data released Wednesday did not have a significant impact on precious metals or the marketplace.

Trading volumes are likely to dwindle further Thursday, ahead of the Christmas holiday on Friday. Many markets close early on Thursday.

Technically, February gold futures prices closed nearer the session low today. There is the potential for a bullish double-bottom reversal pattern to form on the daily bar chart. However, this week’s downside price action is working to negate that possibility. The gold bears have the solid overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the December high of $1,088.30. Bears' next near-term downside price breakout objective is pushing prices below solid longer-term technical support at the contract low of 1,045.40. First resistance is seen at $1,075.00 and then at this week’s high of $1,081.40. First support is seen at this week’s low of $1,063.10 and then at $1,057.00. Wyckoff’s Market Rating: 2.0

March silver futures prices closed nearer the session high. The silver market bears still have the firm overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the December high of $14.64 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the contract low of $13.64. First resistance is seen at this week’s high of $14.40 and then at $14.50. Next support is seen at today’s low of $14.20 and then at this week’s low of $14.045. Wyckoff's Market Rating: 2.0.

March N.Y. copper closed up 155 points at 212.45 cents today. Prices closed nearer the session high today on short covering. The copper bears still have the firm overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 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 214.40 cents and then at 215.00 cents. First support is seen at 210.00 cents and then at 208.00 cents. Wyckoff's Market Rating: 2.0.

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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