Showing posts with label Comex. Show all posts
Showing posts with label Comex. Show all posts

Thursday, March 1, 2012

Comex Gold, Silver Post Modest Recoveries On Bargain Hunting

Comex gold and silver futures prices ended the U.S. day session higher and near their daily highs Thursday, which was encouraging to the bulls following the big downdraft on Wednesday. Some bargain hunting was featured. The key “outside markets” were mixed for the precious metals markets Thursday, as the U.S. dollar index was slightly higher and crude oil prices were also slightly higher. April gold last traded up $11.00 at $1,722.30 an ounce. Spot gold was last quoted up $24.60 an ounce at $1,721.75. March Comex silver last traded up $0.967 at $35.55 an ounce.

The gold and silver markets recovered somewhat from Wednesday’s unexpected steep drop in prices. Bargain hunters did step in to “buy the dip” in prices, but only in a modest fashion for gold. Gold bulls need to show better power soon.

The precious metals sold off Wednesday morning when U.S. Federal Reserve Chairman Ben Bernanke, in remarks to the U.S. Congress, made no mention of another round of quantitative easing in the works by the U.S. central bank.

The gold market bulls can take solace from the fact the 11-year-old price uptrend in the yellow metal remains fully in place, and Wednesday’s sharp sell-off, by itself, is so far insignificant from a longer-term technical perspective. And if the market price history of the past 11 years repeats itself, which technical odds suggest will be the case, this dip in gold prices will eventually prove to be a bargain-hunting buying opportunity. From a longer-term technical perspective, the path of least resistance for gold prices remains up, and will remain up until the longer-term price downtrend is broken. It would take a move in nearby Comex gold futures below the $1,500.00 level to begin to inflict significant longer-term chart damage to just begin to suggest the longer-term uptrend is ending.

The U.S. dollar index traded slightly higher Thursday, on more short covering after prices hit a fresh 3.5-month low Wednesday. Nymex crude oil futures prices traded higher, but have backed off from this week’s high. The recent rally in crude oil prices has been a bullish factor for the precious metals.
On the European Union sovereign debt crisis front, the big European Central Bank refinancing operation was very well subscribed Wednesday and the European bond markets are feeling the positive impact on Thursday, with generally lower yields. Still, the overall EU debt crisis remains a major underlying bullish factor for safe-haven gold.

The London P.M. gold fixing was $1,714.00 versus the previous P.M. fixing of $1,770.00.

Technically, April gold futures prices closed nearer the session high Thursday. The gold market bulls need to show more power soon to regain upside technical momentum. If there is strong selling pressure on Friday, more serious chart damage could be inflicted. The bulls’ next upside price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,792.70. Bears' next near-term downside price objective is closing prices below solid technical support at this week’s low of $1,688.40. First resistance is seen at $1,740.00 and then at $1,750.00. First support is seen at $1,706.70 and then at $1,700.00. Wyckoff's Market Rating: 6.5.

March silver futures prices closed near the session high Thursday and made a decent recovery from the big losses Wednesday. Prices are still in a two-month-old uptrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $37.48 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the February low of $32.64. First resistance is seen at $36.00 and then at $36.50. Next support is seen at $35.00 and then at Thursday’s low of $34.505. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed up 525 points 392.30 cents Thursday. Prices closed near the session high. Higher crude oil prices supported copper Thursday. Copper bulls have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above major psychological resistance at 400.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the February low of 369.35 cents. First resistance is seen at this week’s high of 395.25 cents and then at 397.50 cents. First support is seen at 390.00 cents and then at 387.50 cents. Wyckoff's Market Rating: 6.5.