Gold, Silver and Crude Oil Trade in the USA

US Gold prices finished pit trade lower Thursday, but up from the sharp losses early in the session.

The precious metals saw selling due to Bearish outside market influence; a firmer USD index and lower Crude Oil prices, it was also a risk-off day in the market Thursday, which limited buying interest in risk assets, including the raw commodities.

Dec Gold last traded down 16.40 at 1,713.80 oz.

Spot Gold was last quoted down 13.50 at 1,714.75 oz.

Dec Comex silver last traded down 0.265 at 32.615 oz.

At mid-morning the Gold and Silver markets dropped sharply and rapidly on technical selling pressure on talk that a large exchange traded Gold fund liquidated a large position, and as the USD index hit its daily high. The metals prices rebounded quickly to trade near the middle of their daily trading ranges for the remainder of the session.

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Not Bullish for the Gold market was a report from the World Gold Council Thursday that worldwide demand for Gold slipped by around 11% in Q-3. Reports say the Diwali festival in India has kept Indian Gold buyers out of the market this week, which has added to the downside price pressure in the Gold market this week.

European stocks were lower on economic news that suggested the EU countries are in recession. GDP in the Eurozone decreased 0.4% in Q-3, on an annualized basis, to mark the 2nd straight Quarter of decline and 4 Quarters of no growth in the eurozone. The major economies of Germany and France showed modest growth in Q-3, which mitigated the overall contraction in the Eurozone.

The dour EU economic news and ongoing US Fiscal Cliff worries once again has traders and investors in a risk-averse frame of mind. Negotiations and machinations from the US lawmakers on the Fiscal Cliff matter will be very closely scrutinized and parsed in the coming few weeks. It is likely that Democrats and Republicans will reach some form of agreement on the matter before the end of the year, but not without drama in the process.

Israel’s assassination of the Hamas military leader Wednesday and Israel’s pledge to take out more Hamas leaders has the Middle East region uneasy this week. This situation would turn into a solid underlying Bullish factor for safe-haven gold should military action in that region heat up.

The USD index was modestly higher Thursday and is hovering near a 2-month high. The USD Bulls have upside near-term technical momentum.

Nymex Crude Oil prices traded lower Thursday on a Bearish weekly DOE energy stocks report.

Crude Oil (WTI) 85.27 -1.05 (-1.22%)

The Middle East tensions are limiting the downside in Crude Oil, but weak worldwide demand and adequate supplies are limiting the upside. The Crude Oil Bears have the overall near-term technical advantage as a 2-month-old downtrend is in place on the daily chart.

The London PM Gold fixing was 1,710.00 Vs the prior PM fixing at 1,725.75.

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.

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