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P.M. Kitco Metals Roundup: Comex Gold Ends Solidly Higher On Bargain Hunting, Weaker U.S. Dollar, General Rally in Commodities

(Kitco News) - Comex December gold futures prices ended the U.S. day session solidly higher Monday on bargain hunting and short covering following selling pressure seen last week. The market place on Monday was in a more upbeat mood following an impressive start to the U.S. holiday shopping season and on some renewed hope the European Union's sovereign debt crisis has some fixes in the works. The "risk-on" trader mentality in the market place Monday was bullish for the general raw commodity sector, including precious metals. The U.S. dollar index was also lower, which was another bullish factor for gold and silver Monday. February gold last traded up $26.30 at $1,714.90 an ounce. Spot gold last traded up $30.20 an ounce at $1,711.00. March Comex silver last traded up $1.148 at $32.24 an ounce.

The market place saw short covering and bargain-hunting buying interest in many markets Monday, as traders and investors were in a better mood, at least for the moment. The "Black Friday" unofficial start of the U.S. holiday shopping season got off to a good start. On the EU front, there are some more plans being bandied about by EU officials and the IMF, which is really nothing new. It can be argued that many markets were just oversold and due for a corrective bounce. Italian bond yields are still hovering close to 7%, but have backed off a bit from last week's highs. But if history repeats itself, the EU crisis will once again roil the market place, and likely sooner rather than later.

The gold market has recently behaved more like a risk asset than like a safe-haven asset, to the consternation of gold market bulls. But on this "risk-on" trading day in the market place Monday, gold bulls are at least temporarily content with that.

The U.S. dollar index traded lower Monday morning, on a profit-taking, corrective pullback after hitting another seven-week high Friday. The dollar index bulls still have some upside near-term technical momentum as prices are in a near-term uptrend on the daily chart. Crude oil prices traded higher Monday and that also helped boost the precious metals as well as other commodity markets.

The London P.M. gold fixing was $1,714.00 versus the previous P.M. fixing of $1,688.50.

Technically, February gold futures prices closed nearer the session high Monday. Bulls and bears are on a level near-term technical playing field. Bulls' next upside technical breakout objective is to produce a close above solid technical resistance at $1,755.50. Bears' next near-term downside price objective is closing prices below solid technical support at last week's low of $1,670.50. First resistance is seen at Monday's high of $1,724.90 and then at 1,741.20. First support is seen at $1,700.00 and then at Monday's low of $1,686.70. Wyckoff's Market Rating: 5.0.

March silver futures prices closed near the session high Monday. Some near-term technical damage has been inflicted in silver recently. The bears have the slight near-term technical advantage. 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 major psychological support at $30.00. First resistance is seen at $32.50 and then at last week's high of $33.12. Next support is seen at $32.00 and then at $31.50. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed up 855 points 336.95 cents Monday. Prices closed near mid-range and saw short covering and bargain hunting. Prices Friday hit a fresh four-week low. The key "outside markets" were bullish for copper Monday, as the U.S. dollar index was lower, while crude oil and the U.S. stock indexes were higher. Copper bears still have the near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 350.00 cents. The next downside price breakout objective for the bears is closing prices below major psychological support at 300.00 cents. First resistance is seen at 340.00 cents and then at today's high of 341.55 cents. First support is seen at 335.00 cents and then at Monday's low of 330.55 cents. Wyckoff's Market Rating: 3.5.

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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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