Gold Price Gains on Safe-Haven Demand as NATO-Russia Tensions Heat Up After Turkey Downs Russian Jet
New York (Nov 24) News reports that Turkish jets shot down a Russian military aircraft put a modest bid into the safe-haven gold market Tuesday. Short covering and bargain hunting were also featured after gold prices recently hit a 5.5-year low. February Comex gold was last up $6.50 at $1,073.20 an ounce. March Comex silver was last up $0.114 at $14.175 an ounce.
There was risk aversion in the marketplace Tuesday as reports said a Russian warplane was shot down by Turkey’s military. The Russian jet was near the Syrian border when Turkish fighter jets shot it down. Turkish officials said the Russian jet was over its territory and ignored warnings to turn back. Some NATO members concurred that the Russian plane was in Turkey’s airspace. However, Russia said its plane was not in Turkey when it was shot down. NATO officials are meeting later Tuesday in Brussels to discuss the matter. Russian president Vladimir Putin lashed out said his country was “stabbed in the back” by Turkey would retaliate to the downing of its jet.
World stock markets were pressured and U.S. Treasuries were lifted on the Turkey-Russia conflict.
The uneasiness of the free world after the Paris terror attacks, the lockdown in Belguim and the U.S. government warning its citizens about traveling abroad also contributed to a “risk-off” attitude in the general marketplace.
There was an important U.S. economic report just out. The second estimate of third-quarter gross domestic product. The GDP figure came in at up 2.1% versus the last estimate of up 1.5%. The latest reading was right in line with market expectations and had very little impact on the marketplace.
Traders and investors are still awaiting the mid-December FOMC meeting and anticipating the first U.S. interest rate increase in nine years.
Trading activity in the U.S. markets is likely to wind down quickly Wednesday, due to the Thanksgiving holiday on Thursday. Friday is typically one of the slowest U.S. trading days of the year.
Technically, February gold futures prices closed near mid-range. The gold bears still have the solid overall near-term technical advantage. Gold prices are in a steep five-week-old downtrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,098.00. Bears' next near-term downside price breakout objective is pushing prices below solid longer-term technical support at 1,050.00. First resistance is seen at today’s high of $1,080.50 and then at $1,087.30. First support is seen at today’s low of $1,067.60 and then at the contract low of $1,062.40. Wyckoff’s Market Rating: 1.5
March silver futures prices closed near mid-range and saw short covering. The silver market bears still have the solid overall near-term technical advantage. Prices are in a steep four-week-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $14.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at today’s high of $14.30 and then at last week’s high of $14.44. Next support is seen at today’s low of $14.05 and then at the contract low of $13.89. Wyckoff's Market Rating: 1.5.
March N.Y. copper closed up 575 points at 207.90 cents today. Prices closed near the session high on short covering. The key “outside markets were bullish for copper today as the U.S. dollar index was lower and crude oil prices were higher. Copper bears still have the solid overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 220.00 cents.
Source: KitcoNews
