Markets

P.M. Kitco Metals Roundup: Comex Gold Ends Weaker on Mild Profit Taking after Hitting New Record High Early On

(Kitco News) - Comex December gold futures are trading modestly lower in afternoon U.S. trading Tuesday. Prices backed well down from the overnight all-time record high of $1,923.70, on some mild profit-taking pressure. Tuesday was another "risk off" day in the market place as the U.S. stock indexes were lower and U.S. Treasury prices were higher. However, in afternoon trading Tuesday the U.S. stock indexes had moved well off their daily lows, which added a bit of downside pressure to the precious metals markets. December gold last traded down $5.40 at $1,871.60 an ounce. Spot gold last traded down $30.20 an ounce at $1,871.50. December Comex silver last traded down $1.304 at $41.745 an ounce. Gold prices soared to a new record in early trading Tuesday as the European Union debt crisis continues to fester. There have been ongoing negotiations among EU leaders, with the underlying theme that there is still not uniform agreement on specific near-term actions to be taken. Italy is the focus early this week, with Italian bond yields rising amid talk of worker strikes about to occur there. European stocks markets were under pressure Monday on this situation, as the U.S. markets were closed for a holiday. U.S. markets played catch up Tuesday. The surprising news overnight that the Swiss National Bank announced it will peg the Swiss franc to the value of the Euro currency did coincide with gold prices backing well off the record high scored in earlier trading Tuesday. The uncertainty of that situation or the big down move in the Swiss franc may have prompted skittishness in the gold market, or produced some margin-related selling in gold. The U.S. dollar index traded solidly higher Tuesday and prices hit a fresh four-week high overnight. This did add some selling pressure into the gold market as the session wore on. More short covering was featured in the dollar index. While the greenback bears still have the overall near-term technical advantage, bulls have some fresh upside near-term technical momentum to begin to suggest a near-term market low is in place. However, 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. Crude oil prices were also lower most of the session Tuesday, but did rebound in afternoon trading to trade near unchanged. The weaker crude oil prices during the day were a mildly bearish factor for the 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. The London P.M. gold fixing was $1,895.00 versus the previous P.M. fixing of $1,895.00. Technically, December gold futures prices closed nearer the session low Tuesday. Gold market bulls' still have some upside momentum on their side and their next upside technical objective is to produce a close above major psychological resistance at $2,000.00. Bears' next near-term downside price objective is closing prices below solid technical support at $1,817.60. First resistance is seen at $1,900.00 and then at the August high of $1,917.90. First support is seen at Tuesday's low of $1,861.80 and then at $1,850.00. Wyckoff's Market Rating: 8.5. December silver futures were also pressured by bearish "outside markets" Tuesday that included a stronger U.S. dollar index and lower crude oil futures prices. The silver bulls still have the overall near-term technical advantage. Prices are still 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 $38.81. First resistance is seen at $42.00 and then at $42.50. Next support is seen at Tuesday's low of $41.64 and then at $41.50. Wyckoff's Market Rating: 6.5. December N.Y. copper closed down 615 points 406.30 cents Tuesday. Prices closed near mid-range today and saw more profit-taking pressure from recent gains. Copper was also pressured by bearish "outside markets" today that included a stronger U.S. dollar index and lower crude oil futures prices. Copper bulls have faded recently. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at last week's high of 422.30 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at 410.00 cents and then at Tuesday's high of 413.25 cents. First support is seen at Tuesday's low of 402.20 cents and then at 400.00 cents. Wyckoff's Market Rating: 5.0. 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.

Other Topics

Commodities

Latest Markets Videos