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P.M. Kitco Metals Roundup: Gold Ends Firmer as Choppy, Sideways Trade and Summertime Doldrums Continue
Wednesday August 15, 2012 2:43 PM
Comex gold futures prices ended the U.S. day session modestly higher Wednesday. It was yet another quiet, summertime trading day. The market place is awaiting some fresh, market-moving fundamental inputs. But with the dog days of summer at hand in the U.S. and most of Europe on vacation, that news has been hard to come by lately. Several U.S. economic reports released Wednesday failed to significantly impact the precious metals. December gold last traded up $4.00 at $1,606.40 an ounce. Spot gold was last quoted up $5.00 an ounce at $1,604.50. September Comex silver last traded up $0.022 at $27.785 an ounce.
Many market participants are also on the sidelines, or are tentative, as they wait to see if the U.S. Federal Reserve will act to implement another round of quantitative easing of U.S. monetary policy—nicknamed QE3. Any such action could occur at the Fed’s Jackson Hole, Wyoming annual gathering in late-August, or at the next meeting of the Fed’s Federal Open Market Committee in September.
Reports overnight said major investors George Soros and John Paulson have significantly increased their holdings in the largest gold-backed exchange traded fund, SPDR Gold Trust. These two heavyweights are considered the “smart money” in the market place, and it appears they are doing some bargain-hunting shopping and looking for gold prices to appreciate in the coming months.
The U.S. dollar index was higher Wednesday, which limited buying interest in the precious metals. The greenback is seeing choppy trading action recently, but the bulls maintain the solid overall near-term technical advantage. Meantime, crude oil prices were also higher Wednesday, and that was supportive for the metals. Oil bulls still have a bit of upside near-term technical momentum on their side. The precious metals markets will continue to look closely at how these two key “outside markets” trade on a daily basis.
The London P.M. gold fix is $1,601.75 versus the previous London P.M. fixing of $1,597.75.
Technically, December gold futures prices closed nearer the session high Wednesday. The choppy, sideways and range-bound trading action continues as it has for the past two months. The gold market bulls and bears are on an overall level near-term technical playing field. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the June high of $1,646.40. Bears' next near-term downside price objective is closing prices below solid technical support at the July low of $1,559.50. First resistance is seen at Tuesday’s high of $1,618.90 and then at last week’s high of $1,633.30. First support is seen at $1,600.00 and then at Wednesday’s low of $1,592.10. Wyckoff’s Market Rating: 5.0
September silver futures prices closed near mid-range Wednesday. Not much new in silver, either, as prices are still choppy, sideways and range-bound. Silver bears still have the slight overall near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $28.445 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of $26.105. First resistance is seen at Wednesday’s high of $27.96 and then at this week’s high of $28.15. Next support is seen at Wednesday’s low of $27.43 and then at $27.00. Wyckoff's Market Rating: 4.5.
September N.Y. copper closed down 125 points at 334.65 cents Wednesday. Prices closed nearer the session low in quieter trading. Copper bears still have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 345.70 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of 325.00 cents. First resistance is seen at Wednesday’s high of 337.25 cents and then at 340.00 cents. First support is seen at Wednesday’s low of 333.40 cents and then at 330.00 cents. Wyckoff's Market Rating: 3.5.
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By Jim Wyckoff,
contributing to Kitco News; jwyckoff@kitco.com
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