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P.M. Kitco Metals Roundup: Comex Gold Ends Higher on Bargain and Save-Haven Buying, Positive Outside Markets

(Kitco News) - Comex December gold futures are ended the U.S. day session solidly higher and near the daily high on safe-haven and bargain-hunting buying interest following selling pressure Monday. A lower U.S. dollar index and higher crude oil prices Tuesday also supported buying interest in the precious metals. December gold last traded up $29.60 at $1,843.00 an ounce. Spot gold last traded up $25.80 an ounce at $1,840.75. December Comex silver last traded up $1.128 at $41.345 an ounce.

Like a broken record, value hunting traders and investors yet again stepped in to "buy the dip" in gold prices Tuesday, following solid losses posted on Monday. It can be argued this phenomenon has occurred for the past 10 years, on a longer-term basis, but it has become more pronounced in recent months.

The U.S. dollar index traded lower Tuesday, on a corrective pullback after hitting a fresh six-month high Monday. This also supported fresh buying interest in the precious metals. However, the greenback bulls still have some upside near-term technical momentum to suggest a price uptrend can be sustained. If the U.S. dollar index continues to trade sideways to higher, that would be a bearish underlying factor for the precious metals markets.

Crude oil futures prices traded solidly higher Tuesday, which was also bullish for gold and silver. Crude oil prices hit a fresh five-week high Tuesday, which did give the crude bulls some fresh upside near-term technical momentum. Crude oil will remain an important "outside market" that will influence the precious metals markets.

The European Union sovereign debt crisis was still in the headlines Tuesday. Worries about default on debt payments by Greece and rising Italian bond yields are the EU debt crisis worries of the moment on this day. There are unconfirmed reports that China is thinking about stepping in to buy some Italian debt, and that Germany and France may soon make a joint statement regarding Greece's debt. But still, there has been no major breakthrough regarding effectively dealing with Greece's debt. The Euro currency has been hammered and the U.S. dollar index has rallied recently as investors fleed European Union assets. The EU debt crisis is still a major underlying bullish factor for gold and is prompting safe-haven demand for the metal.

Here's an important element for all gold traders to monitor closely: If the U.S. stock indexes drop below their August price lows, that would be extremely bearish for U.S. stocks and very likely significantly bullish for safe-haven gold.

The London P.M. gold fixing was $1,820.00 versus the previous P.M. fixing of $1,834.00.

Technically, December gold futures prices closed near the session high Monday. The gold market bulls have the solid overall technical advantage. Bulls' next upside technical objective is to produce a close above solid technical resistance at the all-time high of $1,923.70. Bears' next near-term downside price objective is closing prices below solid technical support at last week's low of $1,793.80. First resistance is seen at $1,850.00 and then at this week's high of 1,865.20. First support is seen at $1,825.00 and then at $1,800.00. Wyckoff's Market Rating: 8.0.

December silver futures prices closed near the session high Monday. Silver prices were supported by bullish "outside markets" today that included a weaker U.S. dollar index and higher crude oil prices. The silver bulls still have the overall near-term technical advantage, amid choppy trading. Prices are in a choppy, 10-week-old uptrend on the daily bar chart. Bulls' next upside price objective is producing a close above strong technical resistance at the September high of $43.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at this week's low of $39.75. First resistance is seen at $41.50 and then at $42.00. Next support is seen at $41.00 and then at $40.50. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed up 145 points 398.00 cents Tuesday. Prices closed near mid-range and saw short covering in a bear market. Copper prices were supported by bullish "outside markets" today that included a weaker U.S. dollar index and higher crude oil prices . Copper bears have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 415.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of 384.20 cents. First resistance is seen at 400.00 cents and then at Tuesday's high of 402.45 cents. First support is seen at today's low of 395.50 cents and then at this week's low of 390.50 cents. Wyckoff's Market Rating: 4.5.

Follow me on Twitter! If you want daily, or nightly, up-to-the-second market analysis on gold and silver price action, then follow me 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.

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