Gold, Silver and Crude Oil Trade

US Gold prices finished pit trade lower on profit-taking and consolidation from the gains posted last week.

A sharp drop in Crude Oil futures prices the afternoon Monday helped to fuel some selling pressure in Gold and Silver. The precious metals are pausing to refresh, and seeing some chart consolidation following last week's action that saw December Gold Friday tap a 6-month high of 1,780.20.

Dec Gold last traded down 11.70 to 1,761.00 oz.

Spot Gold was last quoted -11.40 at 1,759.50 oz.

Dec Comex Silver last traded off 0.721 at 33.93 oz.

Most commodity markets saw selling pressure Monday, that spilled over into precious metals. Some general profit taking hit commodities in the aftermath of last week's US Federal Reserve announcement of another round of quantitative easing of monetary policy. That followed the European Union announcing its own new monetary stimulus package the week before. Both events are commodity market Bullish.

The next major news event the markets is focused on is Thursday's manufacturing data coming out of China.

Do not be surprised if the EU debt crisis come back to the front burner in the near term. The EU debt crisis remains a Bullish underlying fundamental for the Gold and Silver markets, due to the safe-haven aspect of the metals.

The USD index was firmer late Monday, on some Short covering in a Bear market after prices Friday hit a 4 month low. The "Greenback Bears" have the near-term technical advantage as a 2 month old downtrend line is in place on the daily chart.

Crude Oil prices were sharply lower in a late sell off Monday on heavy profit taking. Prices last Friday hit a 5-month high above 100.00 bbl. Crude Oil Bulls still have the overall near-term technical advantage.

WTI Crude Oil 96.64 -2.36 ( -2.38%)

These 2 Key "Outside Markets" were in a Bearish posture for the precious metals Monday afternoon and will continue to have a daily influence on precious metals prices.

The London PM Gold fixing is 1,770.00 vs the prior PM fixing at 1,775.50.

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.