Asia looks at Gold?s Technical Breakout

It was a "risk-on" day in the market, as most commodity futures markets saw strong buying interest sparked by the key outside markets being in a daily Bullish mode.

The USD index was lower and Crude Oil prices were higher.

The Gold Bulls gained new upside near-term technical momentum Tuesday. The Silver market Bulls this week have also gained technical strength.

Dec Gold last traded + 18.60 at 1,641.50 oz.

Spot Gold was last quoted + 18.30 at 1,640.00 oz.

Sept Comex Silver last traded + 0.842 at 29.435 oz.

The precious metals sector got support from the overnight news.

European stocks were firmer Tuesday as a Spanish treasury bill auction was deemed successful. European investors presently are more confident the European Central Bank will be more aggressive in dealing with and aiding the financially troubled EU countries going forward.

However, look for the EU debt crisis to move back to focus in September. That could spark fresh safe-haven demand for Gold.

China's central bank's move to inject more liquidity into its banking system Tuesday was also Bullish for Gold and Silver, and other raw commodity markets as well.

Traders and investors are looking forward to the Jackson Hole, WY U.S. Federal Reserve meeting next week, and the mid-September FOMC meeting.

Many raw commodity and stock market Bulls are hoping the US Fed will soon announce QE-3. The minutes of the last FOMC meeting are due Wednesday.

Reports overnight said India's festive season Gold imports this year will likely be half of last year's rate, at 200 to 250 tons for Y 2012. Reasons for the slack demand include perceived high Gold prices and a poor monsoon season depressing consumer demand. The market shrugged off that potentially Bearish news, as traders view the decline in Asian physical Gold demand is not new news, and had factored it into prices.

The USD index traded lower Tuesday and hit a 4-week low. The "Greenback Bulls" are fading and a downtrend line is in place on the daily bar chart.

Crude Oil prices were higher Tuesday and tapped a 3-month high. Crude Oil Bulls have the Northside near-term technical momentum now.

WTI Crude Oil 96.40 +0.43 (0.45%)

The precious metals markets will continue to look closely at how these 2 Key outside markets trade daily.

The London PM Gold fix is 1,639.50 vs the prior London PM fixing at 1,615.00.

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.