Precious metals finished higher Friday, aided by weakness in the USD after the Italian Senate approved austerity measures requested by the EU.

Gold posted gains of 1.6% to finish at 1788.10 oz, and Silver rallied for 1.7% to end pit trade at $34.69 oz.

Crude Oil futures posted gains of 1.2% to settle at 98.99 bbl. Crude Oil put in highs at 99.20, its best mark since July 27. Futures were aided by better than expected econ data in the US and the passing of the austerity measures in Italy.

Nat Gas finished lower by 1.8% at 3.58 per MMBtu. Futures put in fresh 3 wk lows at 3.57.

Metals Market Recap


The Gold market waffled around both sides of unchanged in morning trade before the Bull Camp took the upper hand.

Some traders suggested that Gold was rising off the hope of a favorable outcome from the Italian mess and that would suggest that Gold was indeed tracking its physical commodity fundamentals.

Also, here are those in the flight to quality camp that suggest that nothing has changed in the Eurozone, and that new leadership in Greece and Italy will not be able to manage the forced austerity measures.

With a weaker USD, and hints of more easing from the ECB, Gold might be drafting off new found inflation hopes, especially in an environment where the threat of a Global contagion is being down graded.

Gold posted gains of 1.6% to finish at 1788.10 oz,


The Silver market started out lagging behind the rest of the precious metals complex, but before mid-session prices had turned positive.

With a positive industrial commodity market environment today, a weaker USD and a strong rise in equity prices it is possible that part of the Silver buying was simple Short covering.

The risk on POV was prevalent enough to think that Silver also saw some fresh out right buying today.

Silver rallied for 1.7% to end pit trade at $34.69 oz.

Energy Market Recap

Dec Crude Oil climbed higher throughout the session, and reached its highest mark since August 1st.

It looks like easing concerns over the debt situations in Italy, and Greece supported a risk-on attitude during the session.

A breakdown in the USD, retracing most of Wednesday's gains, was supportive to the Crude Oil market.

While there was some concern regarding the below average trading volume, prices still established a new high for the advance off the October low.

Some traders indicated that there was a pickup in Dec call option activity at the 100 strike ahead of option expiration next week.

Dec Crude Oil prices finished near their best marks of the week, with a gainer of more than 5.0%.

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.