-Comex gold futures prices are trading at steady to weaker price
levels Friday morning. Prices fell to another three-month low
overnight amid the yellow metal's near-term weak technical posture
due to a lack of fresh safe-haven demand. Traders are awaiting
Friday morning's U.S. gross domestic product report. Comex gold
last traded down $2.40 at $1,316.00 an ounce. Spot gold last traded
up $0.10 at $1,315.50.
Gold market traders are awaiting this morning's U.S. gross
domestic product report. Any stronger-than-expected reading could
put additional downside pressure on gold due to investor risk
appetite increasing. Forecasts call for Friday morning's U.S. GDP
figure to show a rise of 3.5% in the fourth quarter. The U.S. GDP
report is getting extra attention due to the U.K.'s GDP report that
earlier this week showed a surprising contraction in economic
With the U.S. stock indexes trading near multi-year highs, no
major headline news regarding European Union financial problems,
and no major geopolitical flare-ups occurring, investors worldwide
have gained a better appetite for risk, which is hampering the
safe-haven gold market. Reports overnight said the world's largest
gold exchange traded fund (
), SPDR Gold Trust, said Thursday its holdings fell to an
eight-month low, at down 34 tons, or down 2.7%.
However, the gold market is still just one step away from a
solid price rebound or an extended rally should a significant
geopolitical or financial market event suddenly and unexpectedly
appear in the news headlines. Also, gold traders are wondering when
the market will see a corrective upside bounce, which is now
The U.S. dollar index is trading steady to weaker again Friday
morning, as currency traders also await the U.S. GDP data. Prices
Thursday hit a fresh 2.5-month low. The dollar index bears have
downside near-term technical momentum and if the index remains on a
downward path in the near term, look for gold prices to at least
see limited selling interest. Gold bulls have been disappointed
recently that the yellow metal has not seen more upside support
from the weaker dollar index.
U.S. economic data due for release Friday includes
fourth-quarter gross domestic product, the employment cost index
and the University of Michigan consumer sentiment survey.
The London A.M. gold fixing was $1,316.00 versus the previous
P.M. fixing of $1,334.50.
Technically, serious near-term technical damage has been
inflicted in gold recently as prices hit a fresh three-month low
Friday morning. Prices are in a steep four-week-old downtrend on
the daily bar chart. A bearish head-and-shoulders top reversal
pattern is also playing out on the daily bar chart for February
Gold market bulls do still have the overall longer-term
technical advantage. A 10-year-old uptrend is in place on the
longer-term charts. Nearby Comex gold futures prices could drop
below $1,200.00 an ounce before any significant longer-term
technical damage would start to be inflicted to then suggest that a
major market top is in place.
Gold bulls' next near-term upside technical objective is to
produce a close above solid technical resistance at this week's
high of $1,352.40. Bears' next near-term downside price objective
is closing prices below psychological support at $1,300.00. First
resistance is seen at $1,320.00 and then at $1,325.00. Support is
seen at the overnight low of $1,307.70 and then at $1,300.00.
March silver futures last traded down 23.6 cents at $26.795 an
ounce Friday morning. Prices hit a fresh 2.5-month low overnight.
Silver prices are also in a four-week-old downtrend on the daily
bar chart. Significant near-term chart damage has occurred in
silver recently. Silver bulls also do still have the overall
longer-term technical advantage.
The next downside price objective for the silver bears is
closing prices below solid technical support at $26.00. Bulls' next
upside price objective is producing a close above solid technical
resistance at this week's high of $27.95 an ounce. First support is
seen at the overnight low of $26.30 and then at $26.00. Next
resistance is seen at the overnight high of $27.035 and then at
By Jim Wyckoff of Kitco News;