Asia Outlook Gold, Silver and Crude Oil Prices

  on April 24 2012 6:54 PM

US Gold futures prices finished pit trade higher Tuesday, it looks like a Short-covering and bargain-hunting bounce off of Monday's selling pressure.

The Key outside markets were Bullish precious metals, as the USD index was weaker and Crude Oil prices were slightly higher.

The Gold Market Bulls are working to do to regain their upside momentum.

Jun Gold last traded + 11.80 at 1,644.40 oz.

Spot Gold was last quoted + 5.90 at 1,644.75 oz.

May Comex Silver last traded + 0.259 at 30.79 oz.

Trader risk appetite improved Tuesday on the EU's stock markets rebounded. There were government debt auctions in Spain, Italy and the Netherlands that were well subscribed Tuesday lifting investor sentiment.

The overall European Union sovereign debt and financial crisis is to Front Street in the market. The EU is in economic recession, which makes getting its debt problems under control a tough proposition.

Any significant escalation in the EU debt crisis will be Bullish for Gold IMO. Therice action in Gold the past 8 months suggests that EU and other World problems that are not major, but problems nonetheless. have been overall Bearish for Gold, as acted like other raw commodity markets, a risk asset.

When the potentially more serious World problems arise, Gold comes alive, and becomes a sought-after safe-haven asset.

The Federal Open Market Committee of the US Federal Reserve is meeting to discuss monetary policy. The meeting concludes early Wednesday afternoon with a statement from the FOMC and a press conference from Fed Chairman Bernanke.

The statement and press conference could be the most important US economic reading of the week for the precious metals markets. Traders will review the statement and Mr. Bernanke's remarks for any clues regarding further easing of US monetary policy, or lack thereof.

The USD index traded weaker Tuesday but trading remains choppy and sideways on the charts. The Greenback Bulls and Bears are tugging for near-term technical control.

Crude Oil futures prices trading steady to firmer Tuesday, as price action has been choppy. Crude Oil Bulls and Bears are on a near-term level technical playing field.

WTI Crude Oil: 103.49 + 0.38 (+0.37)

In a move Bullish for the Gold camp, the International Monetary Fund (IMF) reported that central banks of the World continue to increase their holdings of Gold.

Russia and Mexico reportedly increased their Gold holdings by over 500,000 oz each during the latest reporting period. Reports also said Gold exchange traded funds continue to see outflows of investment monies.

There are also reports coming out of India that demand for physical Gold remains quiet despite a holiday period at present, which usually draws better retail demand for the metal.

The London PM. Gold fixing was 1,649.50, vs. the prior London PM fixing at 1,629.00.

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.

Join the Discussion