Markets

A.M. Kitco Metals Roundup: Comex Gold Trades Near Steady as U.S. Economic Data Awaited

(Kitco News) - Comex December gold futures are trading modestly lower in quieter early U.S. trading Thursday. A stronger U.S. dollar index is weighing a bit on the precious metals. Traders are awaiting U.S. economic reports due out Thursday. However, trading may remain subdued until the release of Friday morning's key U.S. employment report. December gold last traded down $6.70 at $1,825.00 an ounce. Spot gold last traded down $2.40 an ounce at $1,822.25. December Comex silver last traded down $0.073 at $41.695 an ounce.

The U.S. dollar index is trading higher and hit a fresh two-week high in early trading Thursday. Short covering in a bear market is featured in the index. The greenback bears still have the overall near-term technical advantage. That's an underlying bullish factor for the precious metals. Fundamentally, notions of a fresh U.S. monetary stimulus package from the Federal Reserve in the coming weeks or few months will likely limit the upside for the dollar index.

Weaker U.S. stock indexes Thursday morning are somewhat limiting the downside in precious metals. The U.S. and European stock markets will continue to be the key gauge of worldwide investor risk appetite in the market place. On days of better investor risk appetite (higher stocks) buying interest in gold will likely be limited. On days of shrinking investor risk appetite (lower stocks) gold will likely see more buying interest.

Crude oil prices are trading near steady Thursday morning. Even though precious metals traders' focus has turned a bit away from crude, this market will continue to be a major "outside market" force for the precious metals.

U.S. economic data due for release Thursday includes the weekly jobless claims report, revised productivity and costs, the ISM manufacturing report, construction spending and domestic auto industry sales.

The London A.M. gold fixing was $1,815.50 versus the previous P.M. fixing of $1,813.50.

December gold futures bulls have made a strong recovery from last week's spike low on the daily chart, to suggest last week's low has become a "reaction low" on the daily bar chart. If prices can continue to work sideways to higher in the near term, then bulls would gain confidence the uptrend on the daily chart has been restarted. Bulls' have some upside momentum on their side and their next near-term upside technical objective is to produce a close above solid technical resistance at $1,850.00. Bears' next near-term downside price objective is closing prices below solid technical support at this week's low of $1,778.10. First resistance is seen at the overnight high of $1,831.60 and then at this week's high of $1,845.10 and then at $1,850.00. First support is seen at the overnight low of $1,817.30 and then at $1,800.00.

December silver futures bulls have the solid overall near-term technical advantage. Prices are in a choppy, two-month-old uptrend on the daily bar chart. Bulls' next upside price objective is producing a close above strong technical resistance at the August high of $44.295 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week's low of $38.81. First resistance is seen at this week's high of $42.095 and then at $42.50. Next support is seen at the overnight low of $41.35 and then at $41.00.

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; 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.

Other Topics

Commodities

Latest Markets Videos