US Gold prices finished moderately lower Wednesday. Prices rebounded from the lower levels seen in earlier the session when Gold hit a fresh 2 wk low.
The 2 Key Outside Markets were fully Bearish for Gold and Silver Wednesday, as the USD index was solidly higher and Crude Oil prices were sharply lower.
Precious metals Wednesday decided to follow the generally weak raw commodity sector, which was pressured by the risk aversion in the market place Wednesday.
Dec Gold last traded – 13.10 at 1,753.30 oz.
Spot Gold was last quoted – 9.90 at 1,751.25 oz.
Dec Comex Silver last traded – 0.057 at 34.005 oz.
There was a “risk-off” trader mode in the market place Wednesday, as the European Union sovereign debt crisis is back on the front burner. There are concers the bailout agreement reached among EU officials may be coming apart.
Protesting in the streets occurred in Spain and Greece Wednesday over their governments’ austerity programs. European stock markets dropped amid the protesting and amid fresh, unsettling comments from various EU officials on their debt crisis. The Euro currency dropped to a fresh 2-wk low Wednesday. Yields on Spanish and Italian bond yields are on the rise again.
The tension between China and Japan remain high over some disputed islands. Major Japanese industry is reducing its work force in China.
The EU turmoil is pressuring the raw commodity sector this week, and the precious metals are following, it is my beleif that if there is a serious deterioration in the EU debt crisis, then Gold prices will see new, strong safe-haven demand surface.
The USD index was sharply higher Wednesday on more Short covering and perceived safe-haven demand for the US currency.
The USD Bears still have the overall near-term technical advantage, but the “Greenback Bulls” have gained some near-term momentum recently.
Nymex Crude Oil prices were sharply lower Wednesday and hit a new 7 wk low below 89.00.
WTI Crude Oil 89.91 -1.46 (-1.60%)
Crude Oil Bears have downside momentum to suggest a near-term market top is in place. These 2 Key outside markets will continue to have a significant daily influence on Gold and Silver prices.
The London PM Gold fixing is 1,744.75 vs the previous PM fixing at 1,771.50.
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.
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