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A.M. Kitco Metals Roundup: Comex Gold Higher in Active Trading, Catching Up with Monday's Spot Gains

(Kitco News) - Comex gold futures prices are trading higher but near the middle of the day's trading range early Tuesday, as U.S. price action catches up with Monday's solid gains in the world cash gold market, when U.S. markets were closed.

April gold popped to a fresh seven-week high overnight on the civil unrest in Libya that produced a big spike higher in crude oil prices . Comex April gold last traded up $9.70 at $1,398.30 an ounce. Spot gold last traded down $8.30 at $1,399.00, reflecting prices backing off from Monday's high. Comex silver futures prices reached a fresh 30-year high above $34.00 an ounce overnight.

April Comex futures prices did trade as high of $1,411.50 an ounce in earlier action Tuesday. However, prices did back down from the session high as the U.S. dollar index is seeing strength Tuesday. Both gold and the U.S. dollar are seeing safe-haven buying interest amid the instability in the Middle East. Protesting turned into violence in Libya overnight, with the situation there seeing long-time dictator Moammar Khadaffy on the verge of being overthrown. Crude oil futures prices have spiked higher and back above $90.00 a barrel as Libya is a major oil exporter and is a member of the OPEC cartel.

Look for gold prices to continue to be underpinned by the turmoil in the Middle East, and especially if crude oil prices push still higher in the near term.

U.S. economic reports due for release Tuesday include the S&P/Case-Shiller home price index, the Richmond Fed business survey, and the consumer confidence index.

The London A.M. gold fixing was $1,394.50 versus the previous P.M. fixing of $1,403.00.

Technically, the gold market bulls have solid upside near-term technical momentum on their side. Prices overnight hit a fresh seven-week high. Prices are in a steep four-week-old uptrend on the daily bar chart. Gold bulls have the overall near-term and longer-term technical advantage.

Gold bulls' next near-term upside technical breakout objective is to produce a close above strong technical resistance at the all-time high of $1,434.10, scored in early December. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,365.00. First resistance is seen at the overnight high of $1,411.50 and then at the January high of $1,426.30. Support is seen at the overnight low of $1,390.10 and then at $1,382.00.

March Comex silver futures last traded up 91.9 cents at $33.215 an ounce Tuesday morning. Prices hit a fresh contract and 30-year high overnight, at $34.33. Silver bulls have the strong overall near-term and longer-term technical advantage. Prices are in a steep four-week-old uptrend on the daily chart.

The next downside price breakout objective for the silver bears is closing prices below solid technical support at the January high of $31.275. Bulls' next upside price objective is producing a close above solid technical resistance at $35.00 an ounce. First support is seen at $33.00 and then at the overnight low of $32.39. Next resistance is seen at $33.50 and then at $34.00.

By Jim Wyckoff of 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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