Gold, Silver and Crude Oil

Precious metals rallied hard Tuesday.

The Gold price rose 2.9% to finish at 1700.40 oz, and Silver finished up 4.4% at 33.05 oz.

Worse-than-expected consumer confidence data, + concerns about what is happening over in the EuroZone, helped the precious metals rally throughout the day.

Gold put in highs at 1704.70, and Silver marked its high at 33.34, both the highest in 1 month.

Crude Oil prices extended yesterday's rally, adding 2.1% to finish at 93.17 bbl. Most of Crude's gains came in electronic trade.

Futures traded in a relatively small range throughout the session, but once again closed the Gap between Brent Crude's prices.

Shrinking stocks in Cushing, Oklahoma helped Crude Oil trade higher for its 2nd consecutive session. Tuesday's highs, at 94.65, are Crude's best since August 2.

Nat Gas ended higher by 1.6% at 3.66 per MMBtu.

The Gold market looks like it is returning to a safe haven mode again as prices firmed in the face of the latest confusion in the EU and Gold also seemed to rise in the face of softer than expected US scheduled data flow.

Perhaps the market is poised to ramp up contagion fears from the EuroZone debt situation because of deteriorating financial conditions in Italy or perhaps the trade was simply put off by the news that the

Economic Finance Ministers would not meet prior to the EU summit Wednesday. Some Gold traders suggested that gold might have been partly lifted by QE-3 dialogue from the New York this morning.

While the Silver market initially diverged with the Gold market in the early Tuesday morning US trade action, the market managed to throw off the Bearish tilt and forge a rather impressive early morning low to early afternoon high rally of almost 1.00 oz.

Like Gold, some Silver traders were suggesting that silver was returning to a flight to quality mode, while others suggested that comments of possible QE-3 from the New York Fed might have provided Gold and Silver prices with a lift today.

At least into the EU summit window Wednesday it might be difficult to discount the return to safe haven interest, especially with the troubling dialogue starting to surface on the World's 3rd largest debtor, Italy.


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.