Kitco Exclusive Newstagline
Jim Wyckoff P.M. Kitco Metals Roundup: Comex Gold Ends Modestly Lower on Profit Taking, Weaker Commodity Sector

28 March 2011, 02:10 p.m.
By Jim Wyckoff
Of Kitco News
http://www.kitco.com/

(Kitco News) - Comex gold futures prices ended modestly lower Monday on some mild profit-taking pressure from recent gains and amid general price weakness in the commodity sector Monday. The gold bulls have faded just a bit from a near-term technical perspective. Comex June gold last traded down $6.00 an ounce at $1,421.60. Spot gold last traded down $9.70 at $1,421.00.

Crude oil and the raw commodity sector in general saw weaker price action Monday, which spilled over into selling interest in the gold market. However, crude prices are still trading above $104.00 a barrel. The inflationary implications of crude oil prices above $100.00 a barrel are still and underlying bullish factor for the precious metals markets.

The U.S. dollar index traded near unchanged to slightly lower Monday. The greenback did see a technically bullish weekly high close last Friday. If the U.S. dollar index continues to rebound, then that would be a bearish weight on the precious metals. Still, the dollar index bears have the overall technical advantage, which is what the precious metals bulls want to continue to see.

There are still major, unresolved world events hanging over the market place to start the new trading week. This limited the downside price pressure in crude oil prices Monday. Japan's nuclear crisis is still very serious as worries about radioactive water supplies are now paramount. Middle East tensions and fighting in Libya remain a major geopolitical market factor. There are also now reports of civil unrest in Syria. The European Union's sovereign debt problems are still a major concern for the market place, too.

The London P.M. gold fix was $1,417.00 versus the previous P.M. fixing of $1,436.00.

Technically, June Comex gold futures prices closed near mid-range Monday. Bulls still have the solid overall near-term technical advantage, but have faded just a bit following Friday's bearish weekly low close and Monday's follow-through selling pressure. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at last week's all-time record high of $1,450.00. Bears' next near-term downside price breakout objective is closing prices below psychological support at $1,400.00. First resistance is seen at $1,425.00 and then at Monday's high of $1,433.30. First support is seen at Monday's low of $1,411.50 and then at $1,400.00. Wyckoff's Market Rating: 7.5.

May Comex silver futures closed up 9.1 cents at $37.14 an ounce Monday. Prices closed nearer the session high. Silver bulls have the strong overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. There are no early clues to suggest a market top is close at hand. The next downside price breakout objective for the bears is closing prices below solid technical support at $35.00. Bulls' next upside price objective is producing a close above solid technical resistance at last week's 31-year high of $38.18 an ounce. First resistance is seen at Monday’s high of $37.43 and then at Friday's high of $37.795. Next support is seen at $36.85 and then at Monday's low of $36.435. Wyckoff's Market Rating: 8.5.

May N.Y. copper closed down 635 points at 435.55 cents Monday. Prices closed nearer the session low and saw profit taking from recent gains. Bulls still have the near-term technical advantage. Bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at last week's high of 445.45 cents. The next downside price breakout objective for the bears is closing prices below strong technical support at last week’s low of 426.65 cents. First resistance is seen at 440.00 cents and then at Monday's high of 443.55. First support is seen at Monday's low of 433.15 cents and then at 430.00 cents. Wyckoff's Market Rating: 6.5.

 

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

Don’t Miss a Word! Read Kitco News on the Go with Kcast Gold Live for iPad! Get it now!

<<Back to more Kitco exclusive news