(Kitco News) - Comex December gold futures are trading steady to firmer Thursday morning as the market consolidates its recent strong gains. It’s a “risk-on” day in the market place Thursday, following the European Union leaders’ agreement on a debt mess fix. This has pulled some safe-haven demand away from the precious metals. December gold last traded up $2.90 at $1,726.40 an ounce. Spot gold last traded down $3.00 an ounce at $1,723.00. December Comex silver last traded up $0.40 at $33.71 an ounce.
The market place on Thursday has greeted with a “risk-on” attitude the 11th-hour agreement among EU leaders on a bailout package for Greece and other debt-strapped EU nations and financial institutions. World stock and commodity markets are rallying, which has pulled some safe-haven demand away from gold and silver. However, the EU debt mess has not just disappeared and the matter will likely re-emerge as a major market place concern at some point down the road. The safe-haven gold market has and will likely continue to garner at least some underlying investment demand from the ongoing EU debt crisis.
The U.S. dollar index is trading lower early Thursday and hit a fresh six-week low overnight. The dollar index remains in a short-term downtrend on the daily chart, and that’s an underlying bullish factor for the precious metals. Crude oil prices are sharply higher Thursday morning, and that’s also a bullish “outside market” force for the precious metals.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed Midwest manufacturing index, advance GDP, pending home sales and the Kansas City Fed manufacturing survey.
The London A.M. gold fixing was $1,708.00 versus the previous P.M. fixing of $1,715.00.
Technically, December gold futures prices hit another fresh four-week high overnight. Bulls have gained fresh upside near-term technical momentum. A four-week-old uptrend is in place on the daily bar chart. Bulls have the overall near-term technical advantage. Bulls' next upside technical objective is to produce a close above solid technical resistance at $1,750.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,600.00. First resistance is seen at the overnight high of $1,731.50 and then at $1,750.00. First support is seen at the overnight low of $1,707.20 and then at $1,700.00.
December silver futures bulls have upside near-term technical momentum. A four-week-old uptrend is in place on the daily bar chart. The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is producing a close above technical resistance at $35.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $29.935. First resistance is seen at Wednesday’s high of $33.95 and then at $34.50. Next support is seen at the overnight low of $33.145 and then at Wednesday’s low of $32.905.
Source; http://www.kitco.com/reports/KitcoNews20111027JW_am.html
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