Gold, Silver, Copper and Crude Oil Trading
Gold futures prices finished Wednesday's pit trading sharply lower, near the daily low and tapped a fresh 2-month low on the day.
The precious Yellow metal saw strong follow-through selling pressure from Tuesday afternoon's sell off that was prompted by an upbeat FOMC statement and by news JP Morgan declared a dividend after a successful stress test result.
New and significant near-term technical damage was put on the Gold and Silver charts.
Apr Gold last traded - 56.60 at 1,637.60 oz.
Spot Gold was last quoted - 15.10 at 1,660.50 oz.
May Comex Silver last traded -1.74 at 31.84 oz.
The safe-haven Gold market has taken a hit following the Tuesday afternoon release of the statement following the latest meeting of the Federal Open Market Committee.
The Fed acknowledged an improving US economy with still-low inflation expectations. The statement further dampened talk the Fed will implement another round of what would likely be commodity-market-Bullish quantitative easing (QE-3).
The USD index traded higher Wednesday and hit a fresh 7 week high. That was also Bearish for the precious metals markets Wednesday.
The USD index Bulls have gained new upside near-term technical momentum.
The Crude Oil market was weaker Wednesday, which was a slight negative for the metals. Crude Oil and the USD index continue to be Key outside market forces impacting the precious metals prices on a daily basis.
Now that the latest Greek issues appear to be in the rear view mirror the market's focus will soon turn to other EU trouble spots, such as Portugal and Spain. The overall EU debt crisis remains a major underlying Bullish factor for safe-haven Gold.
The London PM Gold fixing was 1,644.25 vs the prior PM fixing of 1,690.00.
Apr Gold futures prices closed near the session low Wednesday and dropped to a fresh 2-month low as fresh chart damage was inflicted. The Gold Bulls' next Northside price breakout objective is to produce a close above psych resistance at 1,700.00. The Gold Bears' next near-term Southside price objective is closing prices below psych support at 1,600.00.
1st resistance is at 1,650.00 and then at 1,675.00.
1st support is at today's low of 1,635.80 and then at 1,625.00.
May Silver futures prices closed near the session low Wednesday and hit a fresh 7-week low. Significant near-term chart damage was inflicted in Silver on Wednesday. The Silver Bulls' next Northside price breakout objective is closing prices above Key technical resistance at this week's high of 34.41. The next Southside price breakout objective for the Silver Bears is closing prices below major psych support at 30.00.
1st resistance is at 32.00 and then at 32.49.
1st support is seen at today's low of 31.625 and then at 31.50.
May NY Copper closed down 625 pts 384.00 cents Wednesday. Prices closed near the session low. The Key outside markets were Bearish for the Copper market on Wednesday as the USD index was higher and Crude Oil prices were weaker. The Copper Bulls still have the overall near-term technical advantage. Copper Bulls' next Northside breakout objective is pushing and closing prices above Key technical resistance at 400.00 cents. The next Southside price breakout objective for the Bears is closing prices below Key technical support at the February low of 370.25 cents.
1st resistance is seen at 387.75 cents and then at 390.00 cents.
1st support is seen at this week's low of 381.70 cents and then at 380.00 cents.
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.