Gold Price Pounded to 4-Week Low on Technical Selling, Firmer US Dollar Index
New York (Nov 3) The chart-based sellers intensified their assault on gold Tuesday, as prices fell sharply and hit another four-week low. Sell stop orders were triggered in the Comex gold futures market when near-term technical support levels were penetrated on the downside. The yellow metal is now within striking distance of psychological support at $1,100.00. December Comex gold was last down $20.80 at $1,115.10 an ounce. December Comex silver was last down $0.163 at $15.245 an ounce.
The U.S. dollar index rallied today, in part on strong U.S. domestic auto sales data that was reported. The firmer greenback was also a bearish element for the precious metals on this day.
The recent rally in the U.S. stock indexes that are at or near their yearly highs is also keeping investor money away from the hard assets like the precious metals. World stock markets traded narrowly mixed overnight action, amid a lack of major news events. Corporate earnings reports are presently in the spotlight for stock market traders worldwide.
In other news Tuesday, world inflation eased in September. The Paris-based OECD think tank reported annual inflation in the 34 major economies of the world was up 0.4% in September from up 0.6% in August. This is well below the 2.0% annual inflation rate most major central banks would like to see. The OECD report also adds to already worrisome notions that price deflation could envelop the world’s economies.
Traders and investors are looking ahead to Friday’s U.S. employment report from the Labor Department, which is arguably the most important data point of the week, if not the month. The key non-farm payrolls number is forecast to be up around 185,000 in October, following a rise of 142,000 jobs in September.
Technically, December gold futures prices closed near the session low and hit another four-week low today. The gold bears have the firm overall near-term technical advantage and gained fresh power today. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,142.70. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,100.00. First resistance is seen at $1,120.00 and then at $1,125.00. First support is seen at today’s low of $1,113.60 and then at the October low of $1,103.80. Wyckoff’s Market Rating: 3.0
December silver futures prices closed nearer the session low and hit another four-week low today. The silver market bears have the firm overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the October high of $16.37 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at today’s high of $15.45 and then at this week’s high of $15.55. Next support is seen at today’s low of $15.20 and then at $15.00. Wyckoff's Market Rating: 3.0.
December N.Y. copper closed up 210 points at 234.00 cents today. Prices closed near the session high on short covering after hitting a four-week low Monday. Copper bears still have the firm overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the October high of 243.75 cents
Source: KitcoNews
