(Kitco News) - Comex December gold futures prices ended the U.S. day session solidly lower on a corrective, profit-taking pullback from recent price gains. Liquidation of trading positions by weak-handed long gold traders was also featured Thursday. Despite being a safe-haven asset, the gold market is not presently being supported by the escalation in the European Union sovereign debt crisis. December gold last traded down $31.40 at $1,760.20 an ounce. Spot gold last traded down $9.60 an ounce at $1,759.50. December Comex silver last traded down $0.421 at $33.94 an ounce.
The European Union financial and sovereign debt crisis saw no fresh, major negative developments Thursday and that allowed the European and U.S. stock markets to stabilize and rebound a bit Thursday. An auction of Italian treasury bulls was well-subscribed Thursday, which was somewhat of a relief to the market place. However, this situation is far from being resolved and will remain on the front burner of the market place. Friday will be an extra important trading day for the precious metals and for most other markets, heading into an uncertain weekend with traders and investors wondering what to expect on the EU front come next Monday. While not evident the past couple days, the overall troubled EU financial situation remains an overall bullish underlying factor for gold.
It would not be surprising to see bargain-hunting buying interest surface soon in gold as traders “buy the dip.”
The U.S. dollar index traded weaker Thursday on a corrective pullback from Wednesday’s strong gains. However, the dollar index bulls have gained good upside near-term technical momentum recently. That is a bearish underlying fundamental for the precious metals.
The London P.M. gold fixing was $1,756.00 versus the previous P.M. fixing of $1,784.00.
Technically, December gold futures prices closed near mid-range Thursday. No significant chart damage occurred Thursday but the bulls did fade a bit and they do not want to see follow-through selling pressure on Friday that would then produce a bearish weekly low close. Gold bulls still have the overall near-term technical advantage. A six-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 this week’s high of $1,804.40. Bears' next near-term downside price objective is closing prices below psychological support at $1,700.00. First resistance is seen at Thursday’s high of $1,776.90 and then at $1,800.00. First support is seen at Thursday’s low of $1,736.60 and then at $1,725.00. Wyckoff's Market Rating: 6.5.
December silver futures prices closed near mid-range Thursday, on profit taking. The silver bulls still have the overall near-term technical advantage. A six-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 the October 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 $32.105. First resistance is seen at Thursday’s high of $34.34 and then at $35.00. Next support is seen at $33.50 and then at Thursday’s low of $33.13. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed down 700 points 337.10 cents Thursday. Prices closed near mid-range and hit a fresh three-week low. Copper bulls have faded. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at this week’s high of 365.35 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 Thursday’s high of 342.90 cents and then at 345.00 cents. First support is seen at 335.00 cents and then at Thursday’s low of 331.80 cents. Wyckoff's Market Rating: 4.5.
Source; http://www.kitco.com/reports/KitcoNews20111110JW_PM.html
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