Gold Price Hits 10-Mo. Low On Strong Greenback & Investor Optimism
San Francisco (Nov 30) Gold prices ended the U.S. day session solidly lower and hit a fresh 10-month low Wednesday. A strong U.S. dollar, generally upbeat trader and investor optimism recently, and bearish technicals continue to pressure the yellow metal. February Comex gold was last down $14.10 an ounce at $1,176.60. March Comex silver was last down $0.185 at $16.555 an ounce.
A stronger-than-expected U.S. ADP national employment report and an upbeat ISM Chciago business survey helped to push gold prices new daily lows. The November ADP number came in at up 216,000, which was well above market expectations. Today’s U.S. economic reports and fall into the camp of the U.S. monetary policy hawks, who want U.S. interest rates to rise sooner rather than later. The positive U.S. data today helped to push the U.S. dollar index firmly higher today.
The OPEC meeting Wednesday in Vienna, Austria saw the oil cartel put in place a plan to cut its collective crude oil production. Crude oil prices were sharply higher on the reports coming out of Vienna. Reports did say Iran does not want to immediately scale back its oil output. The sharply higher oil prices Wednesday did little to help the gold and silver market bulls.
There is also marketplace uncertainty regarding the December 4 Italian referendum on constitutional reforms. A “no” vote on the reforms could eventually put Italy in violation of European Union rules. A no vote could help to boost the gold market as uncertainty and anxiety would likely become elevated, regarding the ultimate survival of the European Union.
Technically, February gold futures prices closed nearer the session low, hit a 10-month low and closed at a bearish monthly low close today. The gold bears have the solid overall near-term technical advantage and gained more power today. Prices are in a five-month-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,200.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,150.00. First resistance is seen at $1,185.00 and then at $1,190.00. First support is seen at today’s low of $1,171.30 and then at $1,160.00. Wyckoff's Market Rating: 2.0
Live 24 hours silver chart [ Kitco Inc. ]
March silver futures prices closed near the session low today and are very close to the recent six-month low. The silver market bears have the solid overall near-term technical advantage. Prices are in a five-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce
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