Red's Mid-week Gold, Silver Copper Trading Report
The Overall Fundamentals
Feb Gold futures prices ended the pit trade Wednesday higher, as the US Dollar index fell on news the major central banks of the World will move to increase liquidity in the financial markets.
The market place has been strong so far this week, which is Bullish for the Gold market as the precious Yellow metal is acting like a risk asset recently.
Feb Gold last traded + 31.50 at 1,750.40 oz.
Spot Gold last traded + 31.50 at 1,747.50 oz.
Mar Silver last traded + 0.95 at $32.90 oz.
The move Wednesday by the US Federal Reserve, the European Central Bank, the Bank of Japan, Bank of Canada and Swiss National Bank served notice that the major World central banks are in unison on making sure the EU debt crisis does not spread into a Worldwide financial contagion.
Earlier in the day China announced it is dropping its reserve requirement ratio (RRR) for banks by 0.5%. That in effect eases monetary policy and is an overt signal from China that it wants its economy to grow and it will accept more commodity imports to achieve its better economic growth.
The co-ordinated central bank move and the China move are very significantly Bullish for commodity markets, including the precious metals.
US. and European stock markets rallied on the news, along with commodity markets. There was also upbeat US economic data released Wednesday. The risk on trading day was Bullish for Gold and Silver.
Gold has recently not seen new safe-haven investment demand due to the EU debt crisis, but my bias is turned mildly Bearish as safe-haven demand comes back into the Gold market on the prospect of more easing and inflation down the line.
The US Dollar index traded firmer Wednesday morning but then turned sharply lower on the co-ordinated move by the World's central banks.
The Dollar index Bulls have the near-term technical advantage, as prices are still in a near-term up-trend on the daily chart.
Crude Oil prices traded higher Wednesday, also Bullish for the precious metals and other commodity markets.
The London P.M. Gold fixing was 1,746.00 vs. the previous P.M. fixing of 1,717.00.
The Overall Technicals
Technically, Feb Gold futures prices closed near session highs Wednesday, and marked a Bullish outside day up on the daily bar chart.
The Gold Bulls gained Northside technical momentum. The Bulls have regained the near-term technical advantage and a 9-week-old up-trend on the daily bar chart has been re-established.
The Bulls' next upside technical breakout objective is to produce a close above solid technical resistance at 1,775.00.
The Bears' next near-term Southside price objective is closing prices below the psych support mark at 1,700.00.
The 1st resistance is seen at 1,755.50 and then at 1,775.00.
The 1st support is seen at 1,725.00 and then at Wednesday's low of 1,704.30.
Mar Silver futures prices closed near session highs and scored a Bullish outside day up on the daily bar chart.
The Silver Bulls also gained some new Northside near-term technical momentum Wednesday.
The Bulls next Northside price breakout objective is closing prices above solid technical resistance at last week's high of 33.12 an ounce.
The next Southside price breakout objective for the Bears is closing prices below solid technical support at the November low of 30.74.
The 1st resistance is seen at 33.12 and then at 33.50.
The 1st support is seen at 32.50 and then at 32.00.
Mar NY Copper closed up 1,800 pts 357.10 cents Wednesday. Prices closed near session highs and marked a Big Bullish outside day up on the daily bar chart.
Short covering and bargain hunting were featured.
The Copper Bulls gained Northside near-term technical momentum Wednesday to suggest a market low is in place.
The Key outside markets were Bullish Copper on Wednesday, as the US Dollar index was lower, while Crude Oil and the US stock indexes were solidly higher.
The Copper Bulls' next Northside breakout objective is ahead, and closing prices above solid technical resistance at the October high of 376.80 cents.
The next Southside price breakout objective for the Bears is closing prices below solid technical support at last week's low of 321.85 cents.
The 1st resistance is seen at Wednesday's high of 363.50 cents, and then at the November high of 367.45 cents.
The 1st support is seen at 350.00 cents and then at 345.00 cents. 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.