Stay in the Know! Check out Kitco's Full Range of Mobile Apps to Keep You Connected (Kitco News) - Comex February gold futures prices on Thursday ended the U.S. day session firmer and down from the early-session high. Prices did hit another fresh four-week high earl on. The key “outside markets” were in a bullish posture for the precious metals Thursday—a lower U.S. dollar index and firmer crude oil prices. The gold bulls also have gained fresh upside near-term technical momentum this week. February gold last traded up $9.00 at $1,648.60 an ounce. Spot gold was last quoted up $4.80 an ounce at $1,648.25. March Comex silver last traded up $0.255 at $30.145 an ounce. The U.S. dollar index traded lower Thursday amid some better news coming out of the European Union that did rally the Euro currency. However, the dollar index bulls do still have the solid overall near-term technical advantage. But the recent stronger dollar has been less of a bearish weight on gold, as the yellow metal has seen better safe-haven demand surface as the new year gets under way. Crude oil prices traded modestly higher, and are still trading above $100.00 a barrel. That’s a bullish near-term factor for the precious metals. Crude oil will remain an important “outside market” factor for the precious metals. Fresh developments coming out of the European Union debt crisis Thursday included successful auctions of Italian and Spanish debt. A European Central Bank meeting Thursday saw no interest rate reduction, which was bullish for the Euro currency. However, if recent history plays out, it won’t be too long until the EU debt crisis is back on the front burner of the market place, which could further boost gold on better safe-haven investment demand. There are reports of better physical demand for gold, especially from Asian countries, as the new year gets under way. Reports said with China’s lunar new year approaching and with the recent declines that were seen in gold prices, the Chinese are stepping in to buy physical gold. The London P.M. gold fixing was $1,661.00 versus the previous P.M. fixing of $1,634.50. Technically, February gold futures prices closed nearer the session low Thursday and did hit another fresh four-week high early on. Bulls have gained fresh upside technical momentum this week. A two-week-old uptrend is in place on the daily bar chart. Bulls' next upside technical breakout objective is to produce a close above psychological resistance at $1,700.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,600.00. First resistance is seen at Thursday’s high of $1,662.90 and then at $1,670.00. First support is seen at Thursday’s low of $1,640.90 and then at $1,630.80. Wyckoff's Market Rating: 5.5. March silver futures prices closed near mid-range Thursday and also hit a fresh four-week high. Bulls this week have gained fresh upside technical momentum. A two-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $31.00 an ounce. The next downside price breakout objective for the bears is closing prices below major technical support at $28.12. First resistance is seen at Thursday’s high of $30.675 and then at $31.00. Next support is seen at Thursday’s low of $29.87 and then at $29.545. Wyckoff's Market Rating: 5.0. March N.Y. copper closed up 1,015 points 364.75 cents Thursday. Prices closed nearer the session high and hit a fresh five-week high. The key “outside markets” were bullish for copper Thursday, as the U.S. dollar index was lower and crude oil prices were firmer. Copper bulls have the near-term technical advantage and gained more upside momentum today. Prices are in a three-week-old uptrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the October high of 376.80 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at this week’s low of 337.80 cents. First resistance is seen at the December high of 367.40 cents and then at 370.00 cents. First support is seen at 360.00 cents and then at 358.25 cents. Wyckoff's Market Rating: 6.0. 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 contributing to Kitco News; jim@jimwyckoff.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 Firmer, But Off Daily High, Amid Bullish "Outside Markets" 12 January 2012, 2:09 p.m. |