Feb Gold futures prices ended US pit trade strong and solidly higher Tuesday.
On the 1st trading day of the New Year, bargain hunters stepped in to buy. Also, precious metals markets also saw a corrective, Short-covering technical bounce from the strong selling pressure we saw last week.
Key outside markets were Bullish for the precious metals Tuesday; a weaker US Dollar index and sharply higher Crude Oil prices.
Feb Gold last traded up 36.80 at 1,603.60 oz..
Spot Gold was last quoted + 36.00 at 1,603.00 oz.
Mar Comex Silver last traded + 1.735 at 29.65 oz
Tuesday's action was risk on in the market, as seen by solidly higher US stock index and higher commodity prices.
Gold also saw new safe-haven demand on the back of perceived tensions between Iran and the US
Crude Oil prices traded sharply higher Tuesday and traded well above the 100.00 bbl mark. The Saber-rattlings between the US and Iran is supporting Crude Oil. The firmer Crude Oil prices, and the better technical posture of the Crude market are a Bullish factor for precious metals.
WTI Light Sweet Crude finished at 103.07 + 4.24 (+4.28%)
The US Dollar index traded lower Tuesday on some profit taking and a corrective pullback from recent gains.
The Dollar index Bulls still have the overall near-term technical advantage, and that is still a Bearish underlying factor for the precious metals complex. The Dollar index has been, and may continue to be a major outside market force for the precious metals.
Commodity markets, overall, finished on a positive tone Tuesday, following upbeat economic data coming out of China and the US Tuesday.
A stronger-than-expected manufacturing report from China augurs that China continues to be a commodity-consuming juggernaut. This also has Bullish implications for the precious metals markets.
The London P.M. gold fixing was 1,598.00 vs the prior P.M. fixing of 1,531.00.
Technically, Feb Gold futures prices closed nearer the session high Tuesday. Prices are still in a 7-wk-old downtrend on the daily bar chart.
The Bulls' next upside technical breakout objective is to produce a close above Key technical resistance at 1,643.70.
The Bears' next near-term Southside price objective is closing prices below Key technical support at last week's low of 1,523.90.
The 1st resistance is seen at Tuesday's high of 1,608.70 and then at 1,620.00.
The 1st support is seen at 1,585.00 and then at 1,575.30.
Mar Silver futures prices closed near the session high Tuesday and saw Short covering in a Bear market IMO. Prices last week hit a 3-month low. The Key outside markets were in a Bullish posture for the Silver market Tuesday, as the US Dollar index was lower, while Crude Oil and the US stock indexes were sharply higher.
But Silver prices are also still in a 7-wk-old downtrend on the daily bar
The Bulls' next Northside price breakout objective is closing prices above Key technical resistance at 30.21.
The Bears next Southside price breakout objective for the Bears is closing prices below Key technical support at last week's low of 26.145.
The 1st resistance is seen at Tuesday's high of 29.73, and then at $30.00.
The 1st support is seen at 29.00 and then at 28.50.
March NY Copper closed up 1,020 pts 333.80 Cents on Tuesday. Prices closed near the session high and hit a fresh 3-wk high. The better economic data coming out of the US and China today boosted the Red industrial metal. The Key outside markets were also in a Bullish posture for the Copper market Tuesday, as the US Dollar index was lower, while Crude Oil and the US stock indexes were sharply higher.
The Copper Bulls now have the overall near-term technical advantage.
The Copper Bulls' next Northside breakout objective is pushing and closing prices above Key technical resistance at the December high of 367.40.
The Copper Bears next Southside price breakout objective is a closing price below Key technical support at the December low of 323.25.
The 1st resistance is seen at 355.00 and then at 360.00.
The 1st support is seen at 350.00 and then at Tuesday's low of 345.40.
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.