April Gold futures finished pit trade lower Monday, on moderate follow-through selling from Friday's price pressure.
A profit-taking, corrective pullback has been seen in last 2 trading sessions. This latest pullback is not surprising or unhealthy from a technical perspective.
The Key outside markets were also in a Bearish posture for the precious metals Monday, as the US Dollar index was firmer and Crude Oil prices were weaker.
Apr Gold last traded down 17.30 at 1,723.00 oz.
Spot Gold was last quoted down 5.50 at 1,721.00 oz.
Mar Comex Silver last traded down 0.109 at 33.64 oz.
It was a risk off trading day in the market Monday as the European Union sovereign debt crisis is back in the headlines.
That was Bearish for precious metals and most other commodity markets. Still, given that Gold is a safe-haven asset, do not be surprised to see the precious Yellow metal rally if the EU crisis escalates in the near term, even if the US Dollar index rallies.
The US Dollar index was firmer Monday as the Euro currency suffered from the rekindled EU debt jitters. The US Dollar index last week hit a 5-wk low and Bears still have some downside near-term technical momentum.
Cude Oil prices were weaker Monday. Crude Oil Bulls are fading. Crude Oil and the US Dollar index will remain the 2 Key outside markets that will generally have some daily influence on Gold and Silver price moves.
The London PM Gold fixing was 1,719.00 vs. the previous PM fixing of 1,734.00.
Technically: Apr Comex Gold futures prices closed near mid-range Monday. No chart damage has occurred. Gold bulls still have the overall near-term technical advantage.
Mar Silver futures prices closed nearer the session high Monday and saw mild profit taking. The Key outside markets were Bearish for Silver Monday as the US Dollar index was firmer and Crude Oil prices were lower. No chart damage has occurred.
Mar NY Copper closed down 375 pts 386.40 cents Monday. Prices closed near mid-range on some profit taking. The Key outside markets were in a Bearish mood for Copper Monday, as the US Dollar index was firmer and Crude Oil prices were lower. Copper bulls still have the near-term technical advantage. Prices are still in a 6 wk up-trend on the daily bar chart.
LTN makes a Strongly Buy Recommendation on Gold and Silver because the World's central bankers continue to debase fiat money. The data shows that US stocks are - 7% in terms of Gold since Chairman Bernanke announced QE-2 in August 2010 at Jackson Hole, WY. Stay tuned...
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. www.livetradingnews.com