Gold, Silver and Crude Oil Trading
US Gold prices finished pit trade Wednesday lower, and off the 6 -month high of 1,749.50, basis the Dec futures, set in early trading.
Some position squaring and profit taking was seen ahead of Thursday afternoon's FOMC meeting results.
Gold and Silver Bulls remain technically strong on the charts.
Dec Gold last traded -0.10 at 1,734.80 oz.
Spot Gold was last quoted + 0.40 at 1,733.50 oz.
Dec Comex Silver last traded -0.256 at 33.31 oz.
Precious metals prices got an early boost Wednesday as the German Constitutional Court rejected arguments to delay the implementation of the European Stability Mechanism. That news boosted Bullish sentiment in many markets, as the European stock markets rallied along with the Euro currency. The closely watched Italian and Spanish bond yields declined following the court ruling, which is another step on the path to stabilizing the European Union sovereign debt crisis.
The focus of the market place on the results of the meeting of the Federal Open Market Committee of the U.S Federal Reserve, which started Wednesday. The FOMC meeting ends Thursday afternoon with Fed Chairman Bernanke holding a press conference. The market has a bias that the Fed will announce QE-3, or some sort of fresh stimulus package, Thursday. But even if the Fed does not make a stimulus move on Thursday, the majority of the market place believes the US central bank will act to ease monetary policy in the coming weeks.
The USD index was lower again Wednesday and hit another fresh 4 month low. The "Greenback Bears" have the solid near-term technical advantage as a seven-week-old downtrend line is in place on the daily chart.
Crude Oil prices were weaker Wednesday afternoon but are trading not far below the Summertime high.
WTI Crude Oil 97.00 -0.17 (-0.17%)
Crude Oil Bulls still have the overall near-term technical advantage. These 2 Key outside markets continue to have a daily influence on precious metals prices.
The London PM Gold fixing is 1,737.00 vs the prior PM fixing at 1,736.75.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.