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A.M. Kitco Metals Roundup: Comex Gold Gains as U.S. Dollar Resumes Weaker Ways

Comex gold prices are trading modestly higher Thursday morning, as the U.S. dollar index is once again under selling pressure. December Comex gold last traded up $6.30 at $1,328.90 an ounce. Spot gold was last quoted up $3.50 at $1,329.00.

The U.S. dollar index is trading lower Thursday, as trading in the index has become choppy recently. The U.S. dollar-bullish impact from a story Wednesday in the Wall Street Journal that suggested the Fed may not employ a large quantitative easing effort in November, but instead use a more "measured" approach, was short-lived. Many market veterans do believe the "QE" is already mostly factored into many markets' price structures. It's expected the Fed will announce a stimulus measure at its FOMC meeting next week. Look for the U.S. dollar to continue to have a heavy influence on the price of gold for at least the near term.

Trading in many markets, including precious metals, may be more tentative until after the Federal Reserve's FOMC meeting next week. Also, this Friday is the last trading day of the month, which may find profit-taking and position-evening occurring late this week.

U.S. economic data due for release Thursday is light and includes the weekly jobless claims report.

The London A.M. gold fixing was $1,326.50 versus the previous London P.M. fixing of $1,324.50.

From an important technical perspective, recent price action has produced some modest near-term technical damage in gold. However, gold bulls do still have the overall near-term and longer-term technical advantage. If the bulls are able to show some good price strength late this week, then the near-term chart damage would likely be mostly repaired. A bearish weekly low close in gold prices on Friday would provide the bears with some fresh downside technical momentum.

Gold bulls' next near-term upside technical objective is to produce a close above solid technical resistance at this week's high of $1,349.50. Bears' next near-term downside price objective is closing prices below major psychological support at $1,300.00. First resistance is seen at $1,335.00 and then at $1,340.00. Support is seen at the overnight low of $1,322.90 and then at this week's low of $1,318.60. Today's near-term Fibonacci support/resistance level: $1,319.00.

December silver futures last traded up 31.1 cents at $23.715 an ounce Thursday morning. Silver bulls have the overall near-term technical advantage and are on the verge of re-establishing a price uptrend on the daily chart. The next downside price objective for the bears is closing prices below solid technical support at last week's low of $22.84. Bulls' next upside price objective is producing a close above solid technical resistance at $24.50 an ounce. First resistance is seen at $24.00 and then at Wednesday's high of $24.295. Next support is seen at the overnight low of $23.50 and then at Wednesday's low of $23.35. Today's near-term Fibonacci support/resistance level: $23.34.

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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