Gold Ends Down On Corrective Pullback, Bearish Outside Markets Monday November 10, 2014 2:10 PM (Kitco News) - Gold prices ended the U.S. day session lower Monday, giving back about half of Friday’s decent gains. A downside technical correction and bearish “outside markets” put pressure on gold and silver markets today. December Comex gold was last down $13.80 at $1,156.10 an ounce. Spot gold was last quoted down $22.80 at $1,156.25. December Comex silver last traded down $0.094 at $15.62 an ounce. The two key “outside markets” started out the trading week early Monday with the U.S. dollar index lower and crude oil prices higher. However, by midday both of those markets had reversed their courses (dollar index higher and crude lower) to add to selling interest in the precious metals markets. The dollar index hit a four-year high last week, while crude oil prices hit a three-year low last week. U.S. stock indexes were higher Monday and are hovering at or near their record or multi-year highs. The past few weeks have seen more of a “risk-on” trader mentality in the market place, which is another negative for safe-haven gold. In overnight news, the Russian ruble rebounded following its recent drubbing against other major currencies. The ruble was supported on rhetoric coming from Russia’s central bank, saying it will intervene in the currency markets to support the ruble. Russian president Putin also called the recent downslide in the ruble just speculation in the market. China’s consumer inflation rate held steady, at up 1.6% year-on-year, in October, it was reported Monday. The figure was in line with expectations. U.S. economic data released Monday was light and included the employment trends index. The U.S. Veterans Day holiday on Tuesday may make for a quieter trading day. (Note: Follow me on Twitter--@jimwyckoff--for breaking market news.) The London P.M. gold fix was $1,162.00 versus the previous London A.M. fixing of $1,172.00. Technically, December gold futures prices closed near the session low and gave back about half of Friday’s good gains. Prices Friday hit a 4.5-year low but then reversed course and scored a bullish “key reversal” up, which is one early clue of a market bottom being in place. However, today’s losses make Friday’s key reversal less significant. The key “outside markets” were also bearish for gold today as the U.S. dollar index was higher and crude oil prices were lower. The gold bears have the solid near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200.00. Bears next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,130.40. First resistance is seen at $1,160.00 and then at last week’s high of $1,179.00. First support is seen at $1,150.00 and then at $1,137.00. Wyckoff’s Market Rating: 2.0 December silver futures prices closed nearer the session low. Prices Friday also scored a bullish “key reversal” up, which is one early technical clue of a market bottom. However, the lack of follow-through strength today makes Friday’s price action less significant. The key “outside markets” were also bearish for silver today as the U.S. dollar index was higher and crude oil prices were lower. The silver bears have the solid overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $16.22 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 $15.88 and then at $16.00. Next support is seen at $15.50 and then at $15.20. Wyckoffs Market Rating: 1.5. December N.Y. copper closed down 180 points at 302.05 cents today. Prices closed nearer the session low today. The key “outside markets” were bearish for copper today as the U.S. dollar index was higher and crude oil prices were lower. The bears have the near-term technical advantage. Copper bulls next upside breakout objective is pushing and closing prices above solid technical resistance at the October high of 311.40 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the October low of 295.15 cents. First resistance is seen at today’s high of 305.10 cents and then at 307.50 cents. First support is seen at 300.00 cents and then at 298.00 cents. Wyckoffs Market Rating: 3.0. By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco
Posted on: Mon, 10 Nov 2014 20:09:20 +0000