Markets

P.M. Kitco Metals Roundup: Comex Gold Ends Higher on Bargain Hunting, Weaker U.S. Dollar

Comex gold prices ended higher Thursday, on a corrective, bargain-hunting rebound from recent strong selling pressure. A lower U.S. dollar index supported the fresh investor demand for gold. December Comex gold last traded up $16.00 at $1,352.90 an ounce. Spot gold last traded up $17.60 at $1,354.00.

Bargain hunters stepped in to "buy the dip" in gold prices Thursday, as prices had fallen nearly $100.00 an ounce from the November 9 all-time high of $1,424.30, basis the Comex December futures contract.

The U.S. dollar index traded lower Thursday morning, on a pullback from recent gains that saw the index hit a fresh six-week high Tuesday. A firmer Euro currency on easing concerns about Ireland's debt problems did allow the Euro to gain against the greenback. The weaker dollar also lent fresh buying interest to the precious metals.

Generally stronger commodity market prices, including good gains in crude oil, also supported buying interest in the precious metals Thursday. Precious metals traders will continue to closely monitor what other commodity markets are doing, following the early-week's general commodity market price weakness that was tied to notions China will tighten its monetary policy.

The London P.M. gold fixing was $1,350.25 versus the previous P.M. fixing of $1,337.50 an ounce.

Technically, December gold futures prices closed nearer the session high Thursday. Some near-term technical damage had been inflicted recently. However, a bullish weekly high close on Friday would repair most of that damage and provide the bulls with some fresh upside near-term technical momentum to suggest the recent uptrend on the daily bar chart can be restarted. Bulls' next near-term upside technical objective is to produce a close above technical resistance at the October high of $1,388.10. Bears' next near-term downside price objective is closing prices below solid technical support at $1,315.60. First resistance is seen at Thursday's high of $1,359.00 and then at $1,366.00. Support is seen at $1,350.00 and then at $1,340.00. Wyckoff's Market Rating: 6.5.

December silver futures closed up 138.0 cents at $26.89 an ounce Thursday. Prices closed near the session high and saw strong bargain-hunting buying interest and short covering. The key "outside markets" were in a bullish posture for silver Thursday, as the U.S. dollar index was lower, while crude oil and the U.S. stock indexes were higher. Recent near-term chart damage was mostly repaired with Thursday's strong gains. A bullish weekly high close on Friday would provide the bulls with better upside technical momentum. Silver prices at present are still in a 3.5-month-old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at this week's low of $24.98. Bulls' next upside price objective is producing a close above solid technical resistance at $28.00 an ounce. First resistance is seen at Thursday's high of $27.04 and then at $27.50. Next support is seen at $26.50 and then at $26.00. Wyckoff's Market Rating: 7.5.

December N.Y. copper closed up 985 points at 382.80 cents Thursday. Prices closed nearer the session high on short covering and bargain-hunting buying interest. The key "outside markets" were in a bullish posture for copper Thursday, as the U.S. dollar index was lower, while crude oil and the U.S. stock indexes were higher. Some near-term chart damage has been inflicted in copper recently. However, a bullish weekly high close on Friday would repair much of that near-term technical damage. Bulls' next upside objective is pushing and closing prices above solid technical resistance at this week's high of 395.35 cents. The next downside price objective for the bears is closing prices below solid technical support at this week's low of 360.65 cents. First resistance is seen at Thursday's high of 384.55 and then at 387.50 cents. First support is seen at 380.00 cents and then at 376.80 cents. Wyckoff's Market Rating: 7.0.

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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