P.M. Kitco Roundup: Gold Sinks to 9-Month Low Amid Bearish Outside Market Forces Tuesday September 30, 2014 2:00 PM (Kitco News) - Gold prices ended the U.S. day session lower and fell to a nine-month low Tuesday. The key “outside markets” were in a bearish posture for the precious metals, as the U.S. dollar index was higher and crude oil prices were sharply lower. Both gold and silver prices closed at technically very bearish monthly and quarterly low closes, on this last trading day of the month and of the third quarter. December Comex gold was last down $7.20 at $1,211.60 an ounce. Spot gold was last quoted down $4.10 at $1,211.50. December Comex silver last traded down $0.502 at $17.065 an ounce. The U.S. dollar hit another six-year high against the Japanese Yen and a 22-month high against the Euro Tuesday. Ideas the U.S. Federal Reserve will begin to tighten its monetary policy, while other major central banks do the opposite, have boosted the dollar and pressured the Euro currency and other major currencies. The appreciation of the greenback has been a major theme in the market place in recent weeks—to the detriment of the raw commodity sector. Meantime, crude oil futures sold off sharply Tuesday, after showing some signs of a market bottom being in place. Those bullish hopes were dealt a serious blow Tuesday. The big losses in crude oil raise further discussion of price deflation in the raw commodity sector becoming a serious matter for world economies. The market place continues to closely monitor a big but so far non-violent pro-democracy demonstration occurring in Hong Kong. Any escalation or violence in the Hong Kong protesting could quickly see keen risk aversion enter the market place. China is celebrating a week-long national holiday this week. Asian stock markets were pressured on the Hong Kong protesting and the uncertainty surrounding the matter. The U.S. and European markets on Tuesday morning were not being seriously impacted by the situation in Hong Kong. In other China news, reports said the Chinese central bank eased lending rules so that its domestic banks could make more consumer home mortgage loans and prop up the flagging housing sector. In Europe, the annual inflation rate in the European Union fell to a five-year low in September, with the annual consumer price inflation rate coming in at up 0.3%. That’s down from a 0.4% rate in August. That data further bolsters notions the European Central Bank will continue to promote a very easy monetary policy. The ECB holds its monthly meeting Thursday. The London P.M. gold fix was $1,216.50 versus the previous London A.M. fixing of $1,210.00. Technically, December gold futures prices closed near mid-range and hit a nine-month low. Gold bears have the solid overall near-term technical advantage. Prices are in an 11-week-old downtrend 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 $1,232.70. Bears next near-term downside breakout price objective is closing prices below solid technical support at $1,200.00. First resistance is seen at Tuesday’s high of $1,220.70 and then at $1,225.00. First support is seen at Tuesday’s low of $1,204.30 and then at $1,200.00. Wyckoff’s Market Rating: 1.0 December silver futures prices closed nearer the session low and hit a contract and four-year low Tuesday. The 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 $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at Tuesday’s high of $17.575 and then at $17.725. Next support is seen at Tuesday’s contract low of $16.85 and then $16.75. Wyckoffs Market Rating: 1.0. December N.Y. copper closed down 480 points at 300.85 cents Tuesday. Prices closed near the session low and hit a 14-week low today. Prices today also closed at a technically very bearish monthly and quarterly low close. The key “outside markets” were also bearish for copper today as the U.S. dollar index was higher and crude oil prices were sharply lower. Copper bears have the firm overall near-term technical advantage. Copper bulls next upside breakout objective is pushing and closing prices above solid technical resistance at 310.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the March low of 288.45 cents. First resistance is seen at 302.50 cents and then at Tuesday’s high of 306.00 cents. First support is seen at 300.00 cents and then at 296.60 cents. Wyckoffs Market Rating: 2.5. By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco
Posted on: Wed, 01 Oct 2014 00:15:08 +0000
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