Gold Lower on Bearish Chart Posture, Lack of Safe-Haven Interest

San Francisco (Sept 29)  Gold prices ended the US day session modestly lower Tuesday. The precious metal is weighed down this week by a deteriorating near-term technical posture and a continued lack of safe-haven demand despite shaky world stock markets. December Comex gold was last down $5.20 at $1,126.50 an ounce. December Comex silver was last up $0.052 at $14.59 an ounce.

U.S. economic data Tuesday showed a rise in the consumer confidence index in September, at 103.0 versus 101.3 in August. The September reading was the highest since January. The upbeat figure did not help out the gold bulls as it fell into the camp of the U.S. monetary policy hawks, who want to see U.S. interest rates raised sooner rather than later.

Most Asian stock markets were lower Tuesday, following Wall Street’s sharp drop on Monday. China’s Shanghai stock index was down 2% on the day, while Hong Kong’s Hang Seng index was down 3%. Japan’s Nikkei stock index fell to an eight-month low Tuesday. Australia’s stock market dropped to a two-year low. U.S. stock indexes were stable in afternoon dealings Tuesday.

Traders are looking ahead to Friday’s U.S. jobs report for September from the Labor Department. The key non-farm employment figure is expected to be up 200,000 in September, versus a miss to the downside of up 173,000 in the August report.

The London P.M. gold fix today was $1,132.10 versus the previous London A.M. fixing of $1,124.60.

Technically, December gold futures prices closed nearer the session low again today. Gold bears have the firm overall near-term technical advantage and have regained momentum this week. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,156.40. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the September low of $1,097.70. First resistance is seen at today’s high of $1,134.30 and then at $1,141.50. First support is seen at today’s low of $1,123.50 and then at last week’s low of $1,120.50. Wyckoff’s Market Rating: 2.5

December silver futures prices closed near mid-range today. Silver bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the September high of $15.435 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $13.95. First resistance is seen at $14.75 and then at $15.00. Next support is seen at today’s low of $14.455 and then at the September low of $14.245. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed up 25 points at 225.40 cents today. Prices closed near mid-range and hit another four-week low today. Copper bears have the solid overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the September high of 249.30 cents.

Source: KitcoNews