The rally in precious metals extended into its 4th session running.

Gold futures gained 1.3% to end at 1723.60 oz, and Silver futures was up by 1.9% to finish at 33.65 oz.

The flight to safety is back on for the precious metals, evidenced by today's strength in the USD, as uncertainty continues to cover what is next in the euro zone. Both metals traded to fresh 1 month highs Wednesday.

Bearish inventory data, concerns about the EuroZone, and profit taking from its recent rally to back above 90 bbl all pressured Crude Oil prices, which finished lower by 3.2 % at 90.20 bbl.

Nat Gas futures ended lower by 0.07 at 3.59 per MMBtu.

The Gold market marked another impressive move up move Wednesday and marked the highest level since September 23rd.

Gold was not undermined by a German vote that was thought to give German leaders more latitude in pushing for a leverage EFSF fund.

Meaning that Gold rose Wednesday despite a instances of declining anxiety toward the EuroZone situation.

Some players, Shayne and I included, believe that Gold may be benefiting from US QE-3 talk, or perhaps from speculation that the Chinese might be poised to back away from some tightening measures.

That said, so far Gold has made a portion of this week's gains off increased flight to quality developments and therefore the reaction in Gold to upcoming EU actions could be surprising.

The Silver market charged up to the vicinity of the even number 34.00 mark this morning, but the market was not initially able to hold all of those gains.

Silver and Gold both seemed to avoid corrective action today in the wake of EU developments that could have lowered uncertainty and that in turn argues against a safe haven focus.

Perhaps strength in the USD provided a slight undermine of Silver and other physical commodity markets today and perhaps many traders were unwilling to make definitive bets until after the EU summit situation was a known element.

Dec Crude Oil traded higher early in the session, supported by favorable US economic data and hopes that EU leaders might release a reasonable plan to tackle the European debt crisis.

This morning's EIA inventory data showed a much larger than expected build in Crude stocks of 4.735-M bbls.

A good portion of that surprise build came from a snapback in import activity, back up to a rate of 9.373-M BPD.

Dec Crude Oil prices were already weak heading into the EIA report, but sold off further in response to the unexpected build.

The spread differential between Dec and Jan narrowed back toward even money.

The refinery operating rate was 84.8%, up 1.7% from last week.

Meanwhile, the USD began to gain upside momentum as the EU meetings progressed, and that seemed to put added weight on Crude Oil prices. Prices reached a low on the session of 90.00 bbl in the final minutes of the session.

Paul A. Ebeling, Jnr.

 

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.