Gold Silver and Crude Oil
US Gold futures finished pit trade Wednesday modestly higher quiet trading. Prices moved up on a rally in the raw commodity sector.
Short covering, bargain hunting and safe haven buying was the action in Gold ahead of the European Union summit that begins Thursday.
Aug Gold last traded + 2.80 at 1,577.70 oz.
Spot Gold was last quoted + 4.70 at 1,578.25 oz.
Jul Comex Silver last traded off 0.138 at 26.90 oz.
It has been a quiet market Wednesday in front of the EU Summit Thursday and Friday where the expectations remain low. It is time we take the focus off of that stuff and get back to real business IMO.
Gold saw a boost when wire reports said a European Central Bank official said the ECB could lower its interest rates as some fresh economic data coming out of Germany showed lower inflationary pressures. The ECB lower interest rates would heighten the probalibity of commodity price inflation.
ISpain's prime minister said his country cannot endure high borrowing costs much longer. He said urgent mechanisms are needed for debt refinancing. The Spanish 10-yr bond yield was at 6.8% Wednesday.
German leader Angela Merkel's hawkish comments on EU country bailouts this week have helped to set the tone of a potentially divisive and unproductive Summit.
For the past 2 + yrs the EU debt crisis has been on or near the front burner with little visible progress made by EU leaders it seems.
The smart money in the market reckons the EU cannot survive in its present form and function. What is more in question is how the EU debt will impact the other major economies of the World in the coming months, with the worry being a Worldwide debt contagion emanating from the EU.
The USD index was higher Wednesday on safe-haven demand. The Greenback Bulls have some upside near-term technical momentum.
Nymex Crude Oil futures prices were higher on short covering in a bear market. Crude Oil remains in a solid overall Bearish fundamental and technical posture.
The London PM Gold fix is 1,573.50 vs. the previous London PM fixing at 1,576.00.
Aug Gold futures prices closed near the session high Wednesday. Gold market Bears have the overall near-term technical advantage.
The Gold Bulls' next upside price breakout objective is to produce a close above psych resistance at 1,600.00.
The Gold Bears' next near-term Southside price objective is closing prices below Key technical support at the May low at 1,529.30.
1st resistance is at Wednesday's high at 1,584.60 and then at this week's high at 1,589.00.
1 support is at Wednesday's low at 1,563.10 and then at last week's low at 1,558.60.
Jul Silver futures prices closed near mid-range Wednesday. The Silver Bears have the solid overall near-term technical advantage. The Silver Bulls' next Northside price breakout objective is closing prices above solid technical resistance at last week's high of 29.095 oz.
The next Southside price breakout objective for the Bears is closing prices below Key technical support at last October's low of 26.20.
1 resistance is seen Wednesday's high at 27.275 and then at this week's high at 27.59.
1st support is at Wednesday's low of 26.60 and then at last week's low at 26.51.
July NY Copper closed up 315 points 334.45 cents Wednesday. Prices closed nearer the session high on short covering and some perceived bargain hunting.
Copper Bears still have the solid overall near-term technical advantage.
Copper Bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at last week's high of 347.75 cents.
The next Southside price breakout objective for the Bears is closing prices below Key technical support at the June low of 323.80 cents.
1st resistance is at Wednesday's high of 335.50 cents and then at 337.50 cents.
1st support is seen at 330.00 cents and then at this week's low of 327.85 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.