US Gold prices finished pit trade Tuesday with moderate losses on technical consolidation.

A stronger USD index caused some selling pressure to Gold and Silver this week. The Gold and Silver Bulls are still in firm near-term technical control as no chart damage has occurred, and prices are just below their 7 month highs.

Dec Gold last traded – 8.60 at 1,767.10 oz.

Spot Gold was last quoted -10.10 at 1,766.00.

Dec Comex Silver last traded – 0.052 at 33.975 oz

The International Monetary Fund (IMF) cut its Y 2012 world annual economic growth rate to 3.3% from a 3.5% forecast in July. The IMF also cut the Y 2013 world growth rate from 3.9% to 3.6%. The IMF gave a downbeat assessment of European Union countries’ ability to meet budget-deficit targets. The IMF meeting in Tokyo, also warned the US about effectively dealing with its upcoming “Fiscal Cliff.”

Tensions in the Middle East have also ratcheted up a notch as Syria and Turkey are exchanging artillery fire on their borders.

Iran’s President said he is very alarmed by his sanction-strapped country’s inability to meet its budget.

The Gold Bulls are disappointed their precious Yellow metal did not see good safe-haven demand surface on Tuesday.

Overnight news: the Chinese central bank inject fresh liquidity into China’s financial system (US$41-B) via a daily operation, in an effort to stimulate economic growth. Asian stocks rallied on the China news.

European Union finance ministers meet in Luxembourg Tuesday to work on a plan for EU bank supervision. Reports said little progress is being made.

Spain has yet to ask for formal EU bailout assistance, even though European Central Bank (ECB) President Draghi said Tuesday the ECB is ready to implement its bond buying program should Spain as for assistance.

German Chancellor Angela Merkel arrives in Greece Tuesday to meet with Greek leadership on their debt crisis. The Greek public is not in a mood for further austerity measures and there was more protesting in the streets of Athens Tuesday.

The Euro currency came under more selling pressure Tuesday on these developments.

The USD index traded solidly higher Tuesday, on more short covering in a Bear market and on some safe-haven demand.

The USD Bears still have the overall near-term technical advantage in here.

Nymex Crude Oil prices were sharply higher Tuesday, on Short covering and on the heightened Mid-East tensions.

WTI Crude Oil 92.37 + 3.04 (+3.40%)

Crude Oil Bulls and Bears are back on a level near-term technical playing field. These 2 Key outside markets continue to have daily influence on Gold and Silver prices.

The London PM Gold fixing is 1,774.00 vs the prior PM fixing at 1,773.50.


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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