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A.M. Kitco Metals Roundup: Comex Gold Solidly Higher on Bullish Outside Markets, Central Bank Buying

(Kitco News) - Comex February gold futures prices are trading solidly higher in early U.S. trading Friday. A weaker U.S. dollar index and a generally stronger raw commodity sector Friday morning are bullish "outside market" forces for the precious metals. February gold last traded up $20.20 at $1,760.00 an ounce. Spot gold last traded up $11.20 an ounce at $1,757.00. March Comex silver last traded up $0.641 at $33.40 an ounce.

Reports the Bank of Korea bought 15 tons of gold last month is a bullish factor for gold Friday morning. Many believe South Korea's central bank will buy still more gold in the future.

Traders are awaiting Friday morning's key U.S. employment report, which could be a market mover if the key non-farm payrolls figure comes in well above or below expectations. The average of forecasts for the non-farm payrolls figure is for up 125,000 in November. The unemployment rate is expected to be unchanged from last month, at 9%.

The European Union sovereign debt crisis appears to have stabilized this week, and that has been a bullish factor for the gold market, which has been acting like a risk asset the past few weeks.

The U.S. dollar index is weaker Friday morning as the greenback bulls are fading and need to show fresh power soon to keep the uptrend in place on the daily chart. The dollar index bulls do still have the overall near-term technical advantage. Crude oil prices are trading higher Friday morning and are back above $100.00 a barrel. Crude oil bulls have gained fresh upside technical momentum this week, which is bullish for the precious metals and other commodity markets.

The London A.M. gold fixing was $1,751.00 versus the previous P.M. fixing of $1,752.00.

Technically, February gold futures bulls have regained upside momentum this week and overnight hit a fresh two-week high. A nine-week-old uptrend is in place on the daily bar chart. Bulls' next upside technical breakout objective is to produce a close above solid technical resistance at $1,775.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,700.00. First resistance is seen at the overnight high of $1,763.00 and then at $1,775.00. First support is seen at the overnight low of $1,741.70 and then at $1,725.00.

March silver futures bulls have also gained upside technical momentum this week. Bulls' next upside price breakout objective is closing prices above solid technical resistance at $34.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of $30.74. First resistance is seen at $33.50 and then at $34.00. Next support is seen at $33.00 and then at the overnight low of $32.70.

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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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