Gold, Silver, Crude Oil and Copper Trading
US Gold futures prices finished pit trade Wednesday higher tapping a 4-wk high Wednesday.
The precious Yellow metal was boosted by fresh technical buying and by a risk-on trading day that raised most raw commodity markets, including precious metals.
Aug Gold last traded +13.80 at 1,630.70 oz.
Spot Gold was last quoted + 3.79 at 1,620.60 oz.
Jul Comex Silver last traded + 1.135 at 29.535 oz.
Traders and investors are thinking that the central banks of the US and EU will move soon to ease their monetary policies.
The European Central Bank (ECB) meeting Wednesday did not signal that. US Fed Chairman Bernanke speaks to US lawmakers Thursday, and traders are wondering if he will hint at further US easing of monetary policy.
Many beleive it to be too soon for the EU and U.S. to start new monetary easing strategies, but they also think that odds are better than 50-50 that QE-3 will come about in the coming weeks.
Recent weak economic activity out of the US, EU and China have been a Bearish for many markets, and it is now likely the central banks will act to stimulate their economies with easier money policies. That would be Bullish for stock indexes and commodities.
The USD index traded lower Wednesday on profit-taking pressure from recent gains. The USD index Bulls have the overall near-term technical advantage, though I do not think that will be for long now.
Nymex Crude Oil futures were higher on Short covering in a Bear market. Crude Oil remains in a Bearish overall fundamental and technical mode IMO
WTI Crude Oil 85.06 + 0.77 (0.91%)
The London PM Gold fix is 1,635.00 vs the prior London PM fix at 1,606.00.
Aug Gold futures prices closed near mid-range Wednesday and hit a 4-wk high. The Gold Bulls gained some upside technical momentum Wednesday. Prices saw an Northside breakout from a Bullish pennant pattern on the daily chart. The Gold Bulls have regained the slight near-term technical advantage in Gold for the 1st time in several weeks.
The Gold Bulls' next Northside price breakout objective is to produce a close above Key technical resistance at 1,650.00.
The Gold Bears' next near-term Southside price objective is closing prices below psych support at 1,600.00.
1st resistance is at Wednesday's high of 1,642.40 and then at 1,650.00.
1st support is at Wednesday's low of 1,616.50 and then at this week's low of 1,610.00.
Jul Silver futures prices closed nearer the session high and hit a 4-wk high Wednesday. The Silver Bulls gained fresh upside technical momentum Wednesday as prices saw an Northside breakout from a sideways trading range on the daily chart. A 3-month-old downtrend on the daily bar chart was negated Wednesday.
The Silver Bulls' next Northside price breakout objective is closing prices above major psych resistance at 30.00.
The next Southside price breakout objective for the Bears is closing prices below Key technical support at the December low of 26.50.
1st resistance is at Wednesday's high of 29.865 and then at 30.00.
1st support is at 29.00 and then at Wednesday's low of 28.41.
Jul NY Copper closed + 825 points 337.15 cents Wednesday. Prices closed near the session high and saw Short covering in a Bear market. The Key outside markets were Bullish Copper Wednesday, as the USD index was lower and Crude Oil prices were higher.
The Copper Bears have the overall near-term technical advantage. Prices are still in a 5 wk-old downtrend on the daily bar chart.
The Copper Bulls' next Northside breakout objective is pushing and closing prices above Key technical resistance at 345.00 cents.
The next Southside price breakout objective for the Bears is closing prices below Key technical support at the contract low of 308.00 cents.
1st resistance is at Wednesday's high of 338.20 cents and then at 340.00 cents.
1st support is seen at 335.00 cents and then at 332.50 cents.
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.