Markets

A.M. Kitco Metals Roundup: Comex Gold Firmer, Hits Another All-Time High Amid Weaker U.S. Dollar

Comex gold prices are trading modestly higher Wednesday morning and did notch another fresh all-time record high overnight, at $1,314.80 an ounce, basis the most active December futures contract. A weaker U.S. dollar and worries about anemic economies in the U.S. and Europe are prompting fresh buying interest in the precious yellow metal. December Comex gold last traded up $3.00 an ounce at $1,311.30. Spot gold was last quoted up $1.10 at $1,310.50.

The U.S. dollar index hit another fresh eight-month low early Wednesday, following a weaker-than-expected U.S. consumer confidence report that was issued Tuesday. The dollar index remains very weak, technically. There are no early technical clues that the index is near a market bottom. As long as the U.S. dollar index is in an overall price downtrend on the charts, look for gold prices to continue to trend sideways to higher, with intermittent bouts of profit-taking pressure.

There are some rekindled concerns about the European Union's smaller countries and their sovereign debt problems. An Irish bank was downgraded by a ratings agency this week.

Thursday is the last trading day of the month of September and the last trading day of the quarter. That could bring in some profit-taking and book-squaring pressure in the gold and silver markets Wednesday and Thursday.

U.S. economic data due out Wednesday includes the MBA weekly mortgage applications survey, in a light report day. The economic data pace picks up significantly on Thursday, however.

The London A.M. gold fixing was $1,307.50 versus the previous London P.M. fixing of $1,294.00.

Technically, December Comex gold futures bulls have the strong overall near-term and longer-term technical advantage and have gained more upside momentum this week. There are still no early technical clues to hint that a market top is close at hand in gold. Prices are still in a two-month-old uptrend on the daily bar chart.

Bulls' next near-term upside technical objective is to produce a close above psychological resistance at $1,325.00 in December gold. Bears' next near-term downside price objective is closing prices below solid technical support at this week's low of $1,276.20. First resistance is seen at the overnight all-time record high of $1,314.80 and then at $1,320.00. Support is seen at the overnight low of $1,307.00 and then at $1,300.00. Today's near-term Fibonacci support/resistance level: $1,300.00.

Comex silver futures are higher Wednesday as prices hit another fresh 30-year high overnight. December silver last traded up 13.3 cents at $21.84 an ounce.

Silver bulls still have the solid near-term technical advantage at present. Prices are in a steep five-week-old uptrend on the daily bar chart. There are still no early technical clues to suggest a market top is close at hand. The next downside price objective for the bears is closing prices below solid technical support at $21.00. Bulls' next upside price objective is producing a close above solid technical resistance at $22.50 an ounce. First resistance is seen at the overnight high of $22.07 and then at $22.25. Next support is seen at the overnight low of $21.71 and then at $21.645. Today's near-term Fibonacci support/resistance level: $21.69.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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