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(Kitco News) Comex December gold futures prices ended the U.S. day session modestly lower on a corrective pullback from strong gains posted late last week and on an uptick in risk appetite in the market place. Importantly, the near-term technical posture of the gold market has improved since last week's steep price spike down. December gold last traded down $11.10 at $1,786.60 an ounce. Spot gold last traded down $45.70 an ounce at $1,784.00. December Comex silver last traded down $0.436 at $40.565 an ounce. The U.S. stock market has reacted favorably to last Friday's much-anticipated speech by Federal Reserve Chairman Ben Bernanke. The speech and a bit of somewhat encouraging U.S. economic data released Monday has at least temporarily put some investor risk appetite back into the market place. While Bernanke offered no specifics on fresh U.S. monetary stimulus, he did hit that the Fed stands at the ready of such an effort is required in the near future. Bernanke was also a bit more upbeat on the U.S. economy's prospects than many had expected. The European Union debt crisis remains an underlying bullish factor for the precious metals. However, the European financial markets did react favorably to news that two major Greek banks were merging. European Union leaders are still holding meetings to discuss a variety of matters regarding the EU sovereign debt crisis. The whole situation is still messy and won't be completely cleared up any time soon. The U.S. dollar index traded slightly lower Monday morning and the December contract hit a fresh contract low. The greenback bears have the strong overall near-term technical advantage. Bernanke's speech last Friday was also deemed U.S. dollar-bearish. That's an underlying bullish factor for the precious metals. Crude oil prices traded solidly higher Monday, which was also supportive for the precious metals. Even though precious metals traders' focus has turned a bit away from crude, this market will continue to be a major "outside market" force for the precious metals. There was no London P.M. gold fixing Monday due to a U.K. holiday. Technically, December gold futures prices closed nearer the session low Monday. Last week's near-term technical damage that was inflicted when gold spiked to a fresh three-week low of $1,705.40 is now being repaired by the bulls, who do have some more work to do soon to suggest the uptrend on the daily chart can be reestablished. Still, the rebound from the spike low is impressive and suggests last week's low will become a "reaction low" on the daily bar chart. If prices can continue to work sideways to higher in the near term, then bulls will gain confidence the uptrend on the daily chart has been restarted. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at $1,850.00. Bears' next near-term downside price objective is closing prices below solid technical support at $1,750.00. First resistance is seen at $1,800.00 and then at $1,817.60. First support is seen at Monday's low of $1,781.20 and then at $1,759.50. Wyckoff's Market Rating: 6.5. December silver futures prices closed near the session low Monday. The silver bulls still have the overall near-term technical advantage. Prices are in a choppy, two-month-old uptrend on the daily bar chart. Bulls' next upside price objective is producing a close above strong technical resistance at last week's high of $44.295 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week's low of $38.81. First resistance is seen at $41.00 and then at $41.50. Next support is seen at Monday's low of $40.49 and then at $40.00. Wyckoff's Market Rating: 6.0. December N.Y. copper closed down 145 points 410.30 cents Monday. Prices closed near mid-range. Bulls have recently gained upside near-term technical momentum. Copper bulls have the slight near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 425.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 395.00 cents. First resistance is seen at last week's high of 414.50 cents and then at 417.50 cents. First support is seen at Monday's low of 407.55 cents and then at 405.00 cents. Wyckoff's Market Rating: 5.5. Follow me on Twitter! If you want daily, or nightly, up-to-the-second market analysis on gold and silver price action, then follow me on Twitter. It's free, too. My account is @jimwyckoff . By Jim Wyckoff of Kitco News; jwyckoff@kitco.com |
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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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P.M. Kitco Metals Roundup: Comex Gold Ends Weaker on Corrective Pullback and amid Better Investor Risk Appetite 29 August 2011, 2:18 p.m. |