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A.M. Kitco Metals Roundup: Comex Gold, Silver Higher on Safe-Haven Buying; Bullish Technical Momentum also Building

(Kitco News) - Comex gold and silver futures prices are trading higher again Wednesday morning, with support coming from safe-haven buying interest and a more bullish near-term technical posture in both metals. June gold last traded up $4.20 an ounce at $1,527.50. Spot gold last traded up $1.40 an ounce at $1,528.00. July Comex silver last traded up $1.012 at $37.14 an ounce.

The European Union's smaller countries' sovereign debt crisis has once again injected keener investor uncertainty into the market place this week. The EU debt crisis is not going to disappear and is an underlying bullish factor for safe-haven assets like gold. In fact, it could well be that the world market place is presently underestimating the seriousness of the EU's lingering debt problems, which could suddenly boil over into a worldwide debt contagion. The rally in the U.S. Treasury market prices to nearly six-month highs this week is another clue that investor risk appetite is shrinking.

Crude oil prices are trading near unchanged Wednesday morning as traders await the weekly DOE energy stock report. Trading has turned choppy in crude. The near-term technical posture in the crude oil market is still worrisome for the bulls as a bearish pennant pattern has formed on the daily bar chart for July crude oil. Crude oil has been and will continue to be the leader in the raw commodity market sector. If crude embarks on a fresh leg down in prices, gains in the precious metals markets will at least be limited.

The U.S. dollar index is trading steady to firmer Wednesday morning. The dollar index bulls have regained some upside technical momentum recently, to suggest that a market bottom is in place. Keep in mind that gold and the dollar index can rally in tandem if the market place perceives keener market uncertainty, such as a further, serious deterioration in the EU debt crisis.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, durable goods orders, the U.S. house price index and the weekly DOE energy stocks report.

The London A.M. gold fixing is $1,527.00 versus the previous P.M. fixing of $1,527.00.

Technically, June Comex gold futures bulls have the overall near-term and longer-term technical advantage and are gaining upside technical momentum. Prices hit a fresh three-week high on Tuesday. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at $1,550.00. Bears' next near-term downside price objective is closing prices below solid technical support at $1,485.00. First resistance is seen at Tuesday's high of $1,529.00 and then at $1,540.00. First support is seen at the overnight low of $1,521.30 and then at Tuesday's low of $1,513.20.

July Comex silver futures have seen a good rebound recently. Prices hit a fresh three-week high overnight as the bulls are gaining upside near-term technical momentum to suggest a market low is in place. The next downside price breakout objective for the bears is closing prices below solid technical support at $34.00. Bulls' next upside price objective is producing a close above solid technical resistance at $39.47 an ounce. First resistance is seen at $37.50 and then at $38.00. Next support is seen at $37.00 and then at the overnight low of $36.23.

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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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