Gold Ends Slightly Up on Bargain Hunting, Short Covering
New York (Sept 25) Gold prices erased early losses and finished the U.S. day session firmer and near their daily highs Thursday. The yellow metal was lifted on short covering and bargain hunting after hitting a nine-month low in overnight trading. The U.S. dollar index backed well down from its daily high and the U.S. stock indexes sold off sharply, which further encouraged the gold market bulls to step up and do some buying. December Comex gold was last up $2.50 at $1,222.00 an ounce. Spot gold was last quoted up $4.80 at $1,222.00. December Comex silver last traded down $0.222 at $17.48 an ounce.
A feature in the market place this week has been the surging U.S. dollar versus most of the other major world currencies. The U.S. dollar index hit a four-year high Thursday, while the Euro currency dropped to a 14-month low against the greenback. The dollar has been lifted by recent U.S. economic data that has been mostly upbeat, combined with some downbeat economic data coming out of the European Union, Japan and other major industrialized countries. The U.S. dollar could continue to trend higher in the coming weeks, or longer, as it appears the monetary policies of the U.S. Federal Reserve and the other major world central banks will continue on divergent paths. The U.S. Fed is reeling in its very easy money policies of the past few years, while the European Central Bank continues to provide monetary stimulus to the flagging European Union collective economy.
The appreciating value of the dollar on the world foreign exchange markets has been a significantly bearish development for many raw commodities, which are priced in U.S. dollars on the world markets. Gold is at a nine-month low, while silver prices this week hit a four-year low. Grain markets are in the tank and crude oil prices are also in a downtrend. Keep in mind that most raw commodity prices are very cyclical. Savvy traders realize this and are presently looking for value-buying opportunities in the present “valley” of the raw commodity cycle—knowing there will be another surge to a “peak” in the cycle in the coming months or few years.
The London P.M. gold fix was $1,213.75 versus the previous London A.M. fixing of $1,210.50.
Technically, December gold futures prices closed nearer the session high Thursday. Gold bears still have the firm overall near-term technical advantage as a 2.5-month-old downtrend is in place on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,237.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,200.00. First resistance is seen at Thursday’s high of $1,224.80 and then at $1,230.00. First support is seen at of $1,214.70 and then at today’s low of $1,206.60. Wyckoff’s Market Rating: 1.5
December silver futures closed near mid-range and hit a contract and four-year low Thursday. A 2.5-month-old downtrend is in place on the daily bar chart. The bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at Thursday’s high of $17.69 and then at this week’s high of $17.99. Next support is seen at Thursday’s contract low of $17.27 and then at of $17.00. Wyckoff's Market Rating: 1.0.
December N.Y. copper closed down 200 points at 303.40 cents Thursday. Prices closed nearer the session low and hit a 13-week low. Copper bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 312.50 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of 300.95 cents. First resistance is seen at Thursday’s high of 306.35 cents and then at this week’s high of 308.60 cents. First support is seen at Thursday’s low of 301.95 cents and then at 300.95 cents. Wyckoff's Market Rating: 3.0.
Source: KitcoNews
