P.M. Kitco Metals Roundup: Comex Gold Ends Down Amid General Raw Commodity Price Weakness Monday

Monday April 16, 2012 2:02 PM

Comex gold futures prices ended the U.S. day session moderately lower Monday. Most raw commodity markets saw selling pressure Monday amid a mild “risk off” trading day in the market place. Losses in the precious metals were limited, however, by a weaker U.S. dollar index and firmer crude oil prices. June gold last traded down $8.40 at $1,651.80 an ounce. Spot gold was last quoted down $7.60 an ounce at $1,651.50.  May Comex silver last traded up $0.14 at $31.53 an ounce.

While there were no major fresh fundamental developments occurring in the market place over the weekend, the European Union sovereign debt crisis continues to simmer. Spanish bond yields rose above 6% Monday, ahead of two key Italian bond auctions this week. If the bond yields rise above 7%, it’s likely to put the EU debt crisis right back on the front burner of the market place. Worries regarding such did put the market place in a bit of a “risk off” mentality Monday, which pressured most raw commodity markets including the precious metals.

The weekend meeting between the United Nations and Iran regarding Iran’s nuclear program did take place with both sides agreeing to talk further in May. The market place is reading that as bearish for crude oil.

Precious metals traders this week will also focus on fresh U.S. economic data due out as the week progresses. U.S. data Monday showed some weakness, which also contributed to the risk off trader attitudes.

The U.S. dollar index was firmer early Monday, but then sold off on the weaker U.S. data. Trading in the dollar index has been choppy as bulls and bears struggle for near-term control with neither gaining much of an edge.

The London P.M. gold fixing was $1,653.00, compared to the previous London P.M. fixing of $1,666.50.

Technically, June gold futures prices closed near mid-range Monday as the bulls are fading again. Bears are working on re-establishing a six-week-old downtrend on the daily bar chart. The bears have regained the slight near-term technical advantage. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the April high of $1,685.40. Bears' next near-term downside price objective is closing prices below technical support at the April low of $1,613.00. First resistance is seen at Monday’s high of $1,659.60 and then at $1,670.00. First support is seen at Monday’s low of $1,642.00 and then at last week’s low of $1,632.50. Wyckoff's Market Rating: 4.5.

May silver futures prices closed near mid-range Monday in quieter trading. The bears still have the slight near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the April high of $33.295 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the April low of $30.98. First resistance is seen at Monday’s high of $31.70 and then at $32.00. Next support is seen at Monday’s low of $31.175 and then at $30.98. Wyckoff's Market Rating: 4.5.

May N.Y. copper closed up 30 points 363.00 cents Monday. Prices closed near the session high and saw tepid short covering from recent strong selling pressure. Prices hit a three-month low early on. Copper bears still have the near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 380.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at 365.00 cents and then at 367.50 cents. First support is seen at 360.00 cents and then at Monday’s low of 356.90 cents. Wyckoff's Market Rating: 4.0.

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

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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