(Kitco News) - Comex February gold futures prices ended the U.S. day session moderately lower and near the daily low Monday. The market saw some profit-taking pressure and did some consolidating on the chart after recent price gains. February gold last traded down $24.00 at $1,727.30 an ounce. Spot gold last traded down $21.20 an ounce at $1,724.50. March Comex silver last traded down $0.411 at $32.275 an ounce.
Gold and silver did extend their losses in late trading Monday when news reports said the Standard & Poors ratings agency has warned of a potential downgrade of some European Union nations’ Triple A debt rating. That news pressured the U.S. stock indexes and the commodity markets, supported the U.S. dollar index and in turned pressured gold and silver prices.
The general tenor of the market place is a bit calmer to start the new trading week. The European Union sovereign debt crisis appears to have somewhat stabilized last week. There are more EU meetings taking place this week, including an EU summit meeting on Friday, but traders and investors at present are reckoning the worst may now be past regarding the EU debt crisis and its impact on the markets. With gold acting more like a risk asset lately, the easing of EU tensions has been more bullish for gold than bearish, as gold has followed the general path of the other major commodity markets on any given day.
The U.S. dollar index was slightly weaker Monday afternoon and had erased most of the morning losses. The greenback bulls have faded just a bit and need to more power soon to keep the uptrend in place on the daily chart. The dollar index bulls do still have the overall near-term technical advantage. Crude oil prices were trading slightly higher late Monday and are above $100.00 a barrel. Crude oil bulls still have upside technical momentum, which is also bullish for the precious metals and other commodity markets.
The London P.M. gold fixing was $1,744.00 versus the previous P.M. fixing of $1,747.00.
Technically, February gold futures prices closed near the session low Monday. Bulls still have the overall near-term technical advantage. A nine-week-old uptrend is in place on the daily bar chart. Bulls' next upside technical breakout objective is to produce a close above solid technical resistance at $1,775.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,700.00. First resistance is seen at $1,750.00 and then at today’s high of $1,778.80. First support is seen at today’s low of $1,721.10 and then at $1,704.30. Wyckoff's Market Rating: 5.0.
March silver futures closed down $0.256 an ounce at $32.43 today. Prices closed near the session low today on profit taking from recent gains and on consolidation. Bulls next upside price breakout objective is closing prices above solid technical resistance at $34.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of $30.74. First resistance is seen at today’s high of $33.085 and then at $33.50. Next support is seen at $32.00 and then at $31.50. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed up 225 points 360.80 cents today. Prices closed near mid-range today. Bulls have gained some upside near-term technical momentum recently to suggest a market low is in place. The key “outside markets” were bullish for the copper market today, as the U.S. dollar index was weaker and crude oil and the U.S. stock indexes were higher. 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 the November low of 321.85 cents. First resistance is seen at today’s high of 363.60 cents and then at last week’s high of 367.40 cents. First support is seen at today’s low of 356.40 cents and then at 352.75 cents. Wyckoff's Market Rating: 5.5.
Source; http://www.kitco.com/reports/KitcoNews20111205JW_pm.html
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