Red's Mid-week Gold, Silver Copper Trading Report
The Overall Fundamentals
Feb Gold futures prices ended the pit trade Wednesday higher,
as the US Dollar index fell on news the major central banks of
the World will move to increase liquidity in the financial
markets.
The market place has been strong so far this week, which is
Bullish for the Gold market as the precious Yellow metal is
acting like a risk asset recently.
Feb Gold last traded + 31.50 at 1,750.40 oz.
Spot Gold last traded + 31.50 at 1,747.50 oz.
Mar Silver last traded + 0.95 at $32.90 oz.
The move Wednesday by the US Federal Reserve, the European
Central Bank, the Bank of Japan, Bank of Canada and Swiss
National Bank served notice that the major World central banks
are in unison on making sure the EU debt crisis does not spread
into a Worldwide financial contagion.
Earlier in the day China announced it is dropping its reserve
requirement ratio (
RRR
) for banks by 0.5%. That in effect eases monetary policy and is
an overt signal from China that it wants its economy to grow and
it will accept more commodity imports to achieve its better
economic growth.
The co-ordinated central bank move and the China move are very
significantly Bullish for commodity markets, including the
precious metals.
US. and European stock markets rallied on the news, along with
commodity markets. There was also upbeat US economic data
released Wednesday. The "risk on" trading day was Bullish for
Gold and Silver.
Gold has recently not seen new safe-haven investment demand
due to the EU debt crisis, but my bias is turned mildly Bearish
as safe-haven demand comes back into the Gold market on the
prospect of more easing and inflation down the line.
The US Dollar index traded firmer Wednesday morning but then
turned sharply lower on the co-ordinated move by the World's
central banks.
The Dollar index Bulls have the near-term technical advantage,
as prices are still in a near-term up-trend on the daily
chart.
Crude Oil prices traded higher Wednesday, also Bullish for the
precious metals and other commodity markets.
The London P.M. Gold fixing was 1,746.00 vs. the previous P.M.
fixing of 1,717.00.
The Overall Technicals
Gold
Technically, Feb Gold futures prices closed near session highs
Wednesday, and marked a Bullish "outside day" up on the daily bar
chart.
The Gold Bulls gained Northside technical momentum. The Bulls
have regained the near-term technical advantage and a 9-week-old
up-trend on the daily bar chart has been re-established.
The Bulls' next upside technical breakout objective is to
produce a close above solid technical resistance at 1,775.00.
The Bears' next near-term Southside price objective is closing
prices below the psych support mark at 1,700.00.
The 1st resistance is seen at 1,755.50 and then at
1,775.00.
The 1st support is seen at 1,725.00 and then at Wednesday's
low of 1,704.30.
Silver
Mar Silver futures prices closed near session highs and scored
a Bullish "outside day" up on the daily bar chart.
The Silver Bulls also gained some new Northside near-term
technical momentum Wednesday.
The Bulls next Northside price breakout objective is closing
prices above solid technical resistance at last week's high of
33.12 an ounce.
The next Southside price breakout objective for the Bears is
closing prices below solid technical support at the November low
of 30.74.
The 1st resistance is seen at 33.12 and then at 33.50.
The 1st support is seen at 32.50 and then at 32.00.
Copper
Mar NY Copper closed up 1,800 pts 357.10 cents Wednesday.
Prices closed near session highs and marked a Big Bullish
"outside day" up on the daily bar chart.
Short covering and bargain hunting were featured.
The Copper Bulls gained Northside near-term technical momentum
Wednesday to suggest a market low is in place.
The Key "outside markets" were Bullish Copper on Wednesday, as
the US Dollar index was lower, while Crude Oil and the US stock
indexes were solidly higher.
The Copper Bulls' next Northside breakout objective is ahead,
and closing prices above solid technical resistance at the
October high of 376.80 cents.
The next Southside price breakout objective for the Bears is
closing prices below solid technical support at last week's low
of 321.85 cents.
The 1st resistance is seen at Wednesday's high of 363.50
cents, and then at the November high of 367.45 cents.
The 1st support is seen at 350.00 cents and then at 345.00
cents. Stay tuned...
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red
Roadmaster's Technical Report on the US Major Market Indices, a
weekly, highly-regarded financial market letter, read by opinion
makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and
stock markets since 1984, following a successful business career
that included investment banking, and market and business
analysis. He is a specialist in equities/commodities, and an
accomplished chart reader who advises technicians with regard to
Major Indices Resistance/Support Levels.