Markets

P.M. Kitco Metals Roundup: Comex Gold Rallies on Middle East Unrest; Silver Hits 31-Year High

(Kitco News) - Comex gold futures prices closed higher and near the middle of the day's trading range Tuesday. April gold popped to a seven-week high on the civil unrest in Libya that produced a fresh surge in crude oil prices. Comex April gold last traded up $12.40 at $1,401.00 an ounce. Spot gold last traded down $6.00 at $1,401.00. U.S. price action caught Tuesday up with Monday's solid gains in the world cash gold market when U.S. markets were closed. Meantime, Comex silver futures prices reached a fresh 31-year high above $34.00 an ounce Tuesday.

April Comex futures prices traded as high of $1,411.50 an ounce Tuesday, but prices did back down from the session high as the U.S. dollar index saw some upside strength Tuesday. Both gold and the U.S. dollar are seeing safe-haven buying interest amid the instability in the Middle East. Protesting turned into violence in Libya Monday with the situation there seeing long-time dictator Moammar Gadhafy on the verge of being overthrown. Crude oil futures prices have spiked higher and back above $95.00 a barrel as Libya is a major oil exporter and is a member of the OPEC cartel. Look for gold prices to continue to be underpinned by the turmoil in the Middle East, and especially if crude oil prices push still higher in the near term.

The London P.M. gold fix was $1,401.00 versus the previous P.M. fixing of $1,403.00.

Technically, Comex April gold prices closed near mid-range and hit a fresh seven-week high Tuesday. The gold market bulls have good upside near-term technical momentum. A four-week-old price uptrend is in place on the daily bar chart. The gold market bulls have the strong overall near-term and longer-term technical advantage. Bulls' next near-term upside technical breakout objective is to produce a close above solid technical resistance at the all-time high of $1,434.10, scored in early December. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,380.00. First resistance is seen at Tuesday's high of $1,411.50 and then at the January high of $1,426.30. First support is seen at Tuesday's low of $1,390.10 and then at $1,380.00. Wyckoff's Market Rating: 7.5.

March silver futures closed up 80.9 cents at $33.10 an ounce Tuesday. Prices closed nearer the session low but did score a fresh contract and 31-year high of $34.33. The bulls have the strong near-term technical advantage and gained more power Tuesday. Look for daily higher volatility in the silver market. Prices are in a steep four-week-old uptrend on the daily bar chart. The next downside price breakout objective for the bears is closing prices below solid trend-line support at $32.00. Bulls' next upside price breakout objective is producing a close above solid technical resistance at $35.00 an ounce. First resistance is seen at $33.50 and then at $34.00. Next support is seen at Tuesday's low of $32.39 and then at $32.00. Wyckoff's Market Rating: 9.5.

March N.Y. copper closed down 1,630 points at 431.90 cents Tuesday. Prices closed near the session low and hit a fresh four-week low. The market was pressured by the Middle East turmoil and worries that rising oil prices will cut worldwide demand for copper, due to reduced GDP growth in the major world economies. A bearish "key reversal" down was confirmed on the daily chart last week, which was an early technical clue that a near-term market top is in place. Tuesday's price action produced more chart damage and is also a clue that a near-term market top is now in place. Bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the January low of 420.80 cents. First resistance is seen at 435.00 cents and then at 437.50. First support is seen at 430.05 cents and then at 427.50 cents. Wyckoff's Market Rating: 5.0.

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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