(Kitco News) - Comex December gold futures ended the U.S. day session modestly lower but nearer the daily high as bargain hunters stepped in to buy the lower price levels seen earlier. Some fresh, bullish European Union news headlines at midday also lifted the precious metals markets and many other markets off their daily lows. December gold last traded down $4.40 at $1,720.80 an ounce. Spot gold last traded up $4.30 an ounce at $1,720.00. December Comex silver last traded down $0.959 at $33.38 an ounce.
News headlines surfaced near midday that efforts by Greece’s prime minister to hold a referendum on whether to implement last week’s EU bailout package for that beleaguered nation is now not likely to occur. Earlier in the day, news headlines saying the Greek referendum would happen roiled many markets, including the precious metals. The U.S. dollar index spiked again on those news headlines, but in afternoon trading had backed will off its daily highs. That also helped to support the bargain hunting buying interest in the precious metals.
Once again, the EU debt crisis is back on the front burner of the market place. The precious metals markets have recently chosen to follow most other commodity markets lower during the “risk off” trading days. Ironically, if the EU debt crisis once again escalates to the downside, I suspect gold prices would be supported on safe-haven investor demand. Such has been the fickle day-to-day trading nature of the gold market.
The U.S. dollar index is still benefiting from Monday’s Bank of Japan intervention in the currency markets to sell yen and buy U.S. dollars. The dollar index bulls have gained some fresh upside near-term technical momentum this week.
Meantime, crude oil prices were lower Tuesday, and that was also a bearish “outside market” force for the precious metals. However, crude oil prices remain in a near-term uptrend and are so far just seeing a corrective and profit-taking pullback early this week.
The London P.M. gold fixing was $1,699.00 versus the previous P.M. fixing of $1,722.00.
Technically, December gold futures prices closed nearer the session high Tuesday. Profit taking from recent gains was seen. No chart damage has occurred this week. Bulls still have the overall near-term technical advantage, but need to show some fresh power soon. A five-week-old uptrend is still in place on the daily bar chart. Bulls' next upside technical objective is to produce a close above solid technical resistance at last week’s high of $1,754.00. Bears' next near-term downside price objective is closing prices below solid technical support at last week’s low of $1,636.60. First resistance is seen at Tuesday’s high of $1,725.60 and then at this week’s high of $1,746.50. First support is seen at $1,700.00 and then at Tuesday’s low of $1,681.20. Wyckoff's Market Rating: 6.0.
December silver futures prices closed near mid-range Tuesday and saw more profit taking. The silver bulls still have the overall near-term technical advantage, but are fading a bit and need to show fresh power soon. A five-week-old uptrend is still in place on the daily bar chart. Silver bulls' next upside price objective is producing a close above solid technical resistance at last week’s high of $35.70 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $31.23. First resistance is seen at $34.00 and then at Tuesday’s high of $34.725. Next support is seen at $33.00 and then at $32.50. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed down 1,090 points 352.30 cents Tuesday. Prices closed nearer the session low. The key “outside markets” were bearish for copper again Tuesday, as the U.S. dollar index was sharply higher, while crude oil was lower. Copper bulls still have the slight overall near-term technical advantage and a bullish double-bottom reversal pattern has formed on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at last week’s high of 375.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support 330.00 cents. First resistance is seen at 355.00 cents and then at 360.00 cents. First support is seen at 350.00 cents and then at Tuesday’s low of 346.20 cents. Wyckoff's Market Rating: 5.5.
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By Jim Wyckoff of Kitco News; jwyckoff@kitco.com
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