Markets

A.M. Kitco Metals Roundup: Comex Gold Higher amid Bullish "Outside Market" Forces

(Kitco News) - Comex gold futures prices are trading higher Wednesday morning and are hovering just below $1,800.00 as bulls remain fundamentally and technically very strong. The key "outside markets" are aligned in a bullish posture for the precious metals Wednesday, as the U.S. dollar index is weaker and crude oil prices are firmer. December gold last traded up $6.80 at $1,791.80 an ounce. Spot gold last traded up $2.20 an ounce at $1,790.00. December Comex silver last traded up $0.172 at $40.02 an ounce.

The U.S. dollar index is trading weaker Wednesday morning and the greenback bulls are fading again this week. Currency markets are awaiting some U.S. inflation data due out Wednesday morning.

Crude oil prices are trading higher Wednesday morning. Recent price action hints the crude oil market has put in a near-term bottom. Look for choppy and sideways trading in crude oil in the coming weeks. The crude oil market will continue to be a major "outside market" force for the precious metals.

The European Union debt crisis remains a major bullish fundamental factor for the gold market. Tuesday's much-anticipated meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel, who discussed what to do about the debt crisis, left traders and investors nonplussed. The EU debt saga drags on with no end in sight.

The market place continues to look to the U.S. stock market and its daily movements. The daily price moves in the U.S. stock indexes continue to be the gauge for measuring investor risk appetite in the market place.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage application survey, the producer price index and the weekly DOE energy storage report.

The London A.M. gold fixing was $1,792.00 versus the previous P.M. fixing of $1,782.50.

Technically, gold futures bulls have the strong overall near-term and longer-term technical advantage and are gaining near-term upside technical momentum this week, after last week's downside "correction." Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at the all-time high of $1,817.60. Bears' next near-term downside price objective is closing prices below psychological support at the last "reaction low" on the daily bar chart, at $1,725.80. First resistance is seen at $1,800.00 and then at $1,817.60. First support is seen at the overnight low of $1,783.70 and then at Tuesday's low of $1,763.60.

Technically, silver bulls still have the slight overall near-term technical advantage. Bulls are regaining some upside technical momentum this week.

However, the silver bulls are not nearly in the powerfully bullish technical posture that gold now possesses. Silver bulls' next upside price objective is producing a close above solid technical resistance at last week's high of $40.405 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of $37.055. First resistance is seen at $40.405 and then at $41.00. Next support is seen at Tuesday's low of $39.33 and then at $39.00.

Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading , then follow my up-to-the-second precious metals market perspective on Twitter. It's free, too. My account is @jimwyckoff .

By Jim Wyckoff contributing to Kitco News; jim@jimwyckoff.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.

Other Topics

Commodities

Latest Markets Videos