Gold Succumbs To Rebound In Greenback Today
(Kitco News) - The gold and silver markets saw overnight and early-U.S. gains evaporate Wednesday when the U.S. dollar index bounced off its daily low after suffering solid losses overnight. A batch of important U.S. economic reports released earlier today provided a brief lift to precious metals prices. However, the greenback’s bearish influence proved too strong on this day. December Comex gold was last down $5.00 an ounce at $1,277.90. December Comex silver was last down $0.088 at $16.985 an ounce.
The consumer price index (CPI) and retail sales were the U.S. data highlights today. CPI in October came in at up 0.1% from September, which is right in line with forecasts. Retail sales in October were up 0.2% from September versus the forecast of up 0.1%. The Empire State manufacturing survey did come in weaker than expected. While most of this data was in line with market expectations, it did slightly favor the dovish camp on U.S. monetary policy—and that is an underlying positive for the precious metals market bulls.
World stock markets, including U.S. stock indexes, were mostly lower Wednesday, pressured by falling raw commodity markets, especially crude oil. Weaker stock markets also favor the competing asset class, precious metals.
The U.S. dollar index lower and hit a three-week low in overnight trading, before rebounding during the U.S. day session. Meantime, the Euro currency surged to a three-week high today and the Euro bulls have gained power to suggest at least sideways trading in the near term, if not sideways to higher.
Nymex crude oil futures prices were lower Wednesday and are trading around $55.00 a barrel. Prices are well down from the early-November high and the crude oil market may have topped out. It is still my bias that Nymex crude won’t be able to sustain prices at or above $60.00 a barrel. The IEA warned on Tuesday the oil price rally is in jeopardy because of weaker-than-expected demand this year and likely next year, too.
Technically, December gold futures prices closed nearer the session low today. Prices are still in a sideways and choppy trading range on the daily bar chart. Bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80. First resistance is seen at $1,285.00 and then at today’s high of $1,290.00. First support is seen at this week’s low of $1,269.70 and then at $1,262.80. Wyckoff's Market Rating: 5.0
December silver futures prices closed near the session low today. The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.345. First resistance is seen at today’s high of $17.205 and then at last week’s high of $17.27. Next support is seen at this week’s low of $16.82 and then at $16.60. Wyckoff's Market Rating: 5.0.
December N.Y. copper closed down 130 points at 305.20 cents today. Prices closed near mid-range and hit a five-week low today. The copper bulls still have the overall near-term technical advantage but are fading as prices have been trending lower for four weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 317.85 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at 307.50 cents and then at 310.00 cents. First support is seen at today’s low of 303.40 cents and then at 302.00 cents. Wyckoff's Market Rating: 6.0.