Gold futures prices ended pit trade slightly lower on this quiet Wednesday.

The market is consolidating recent price action on the charts.

Trading was careful Wednesday morning as the market digested news out of the Indian Ocean region, where a major earthquake occurred near Indonesia overnight. No Tsunami

The Key outside markets were Bullish for the precious metals Wednesday as Crude Oil prices were higher and the USD index was lower.

Jun Gold last traded - 1.70 at 1,659.00 oz.

Spot Gold was last quoted at 2.50 at 1,658.50 oz.

May Comex Silver last traded down 0.154 at 31.515 oz.

The Gold market did back off modestly Wednesday afternoon in the immediate aftermath of a more upbeat Federal Reserve Beige Book report that suggested the US economy continues to improve, implying that any further quantitative easing (QE-3) of US monetary policy is less likely.

The European stock markets rebounded overnight following solid selling pressure Tuesday. US stock indexes followed suit.

The European Union debt crisis, which had been simmering on the back burner, could be heating up again.

Traders will continue to closely monitor European stock and bond markets for any clues on the situation. Any serious escalation in the EU debt crisis would likely seen a return of safe-haven investment demand for Gold.

Encouraging for the Gold market Bulls is that Gold prices rallied Tuesday on safe-haven buying, as the US and European stock markets sold off.

This gave the Gold Bulls new confidence that any future world economic or geopolitical jitters would likely prompt more safe-haven investment demand for the precious Yellow metal.

In recent weeks the Gold market has tended to follow the other raw commodities and act like a risk asset, instead of a safe-haven asset. Gold market Bulls would prefer their metal act like a safe-haven asset.

The USD index as weaker on Wednesday.

Crude Oil prices were higher Wednesday morning on some short covering and bargain hunting. These 2 Key outside markets are in a Bullish posture for the precious metals Wednesday morning.

WTI Crude Oil last traded at 102.94 + 1.92 (+190%)

The weaker overall near-term technical look of the Crude Oil market is a negative for Gold and Silver.

The London PM Gold fixing was 1,658.00, compared to the prior London PM fixing of 1,644.00.

Technically speaking:


Jun Gold futures prices closed near mid-range in quieter, consolidative trading Wednesday. The Gold Bears still have the slight near-term technical advantage. A 5-wk old downtrend is in place on the daily bar chart.

The Gold Bulls' next upside price breakout objective is to produce a close above Key technical resistance at the April high of 1,685.40.

The Gold Bears' next near-term Southside price objective is closing prices below Key technical support at the April low at 1,613.00.

1st resistance is seen at this week's high of 1,664.80, then at 1,675.00.

1st support is seen at 1,650.00 and then at 1,640.00.

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May Silver futures prices closed near mid-range on Wednesday. The Key outside markets were Bullish Silver, as the USD index was weaker and Crude Oil prices were higher. But, Silver sold off, which is a Bearish signal.

The Silver Bears have the near-term technical advantage in here. A 5-wk old downtrend is in place on the daily bar chart.

The Silver Bulls' next Northside price breakout objective is closing prices above Key technical resistance at last week's high of 33.295 oz.

The next Southside price breakout objective for the Silver Bears is closing prices below the psych support mark at 30.00.

1st resistance is seen at 32.10 and then at 32.50.

1st support is seen at Wednesday's low of 31.37 and then at of 31.11.

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. Read the Terms of Service