Gold, Silver and Crude Oil Prices and Trading

By Roger Baettig | December 03 2012 3:38 PM

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US Gold futures prices finished pit trade modestly higher Monday. A solidly lower USD index prompted some fresh bargain hunting following last week’s selling pressure in the precious Yellow metal.

Gold and Silver prices are seeing some near-term technical chart consolidation, which is not Bearish.

Feb Gold last traded + 6.90 at 1,719.60 oz.

Spot Gold was last quoted + 2.60 at 1,718.25 oz.

Mar Comex Silver last traded + 0.436 at 33.715 oz.

The EUR currency, European stocks and the raw commodity markets were given a mild boost Monday when Greece announced overnight it would buy back up to 10-B Euros of its outstanding bonds at a price from 0.30 to 0.40 cents on the USD.

The positive market sentiment on this news underscored how bad the situation is in Greece, when investors are encouraged that a sovereign government offers to buy back its obligated debt at less than 50% of face value.

Other European investors bought up German government short-term debt offered Monday at a negative return, another sign of the bad economic and financial situation still overhanging the EU. The dour financial situation in the European Union remains a major bullish underlying factor for the safe-haven Gold market.

Eurozone finance ministers met again Monday to further discuss details of Greece’s latest bailout plan.

Germany Friday approved a fresh bailout package for Greece. The European markets and raw commodities were also lifted on an improving Eurozone purchasing managers index, although the PMI still showed an overall contraction in November.

The raw commodity markets were also cheered by news that China’s manufacturing PMI rose to a 7-month high in November. Other Asian countries also posted improving PMI manufacturing numbers Monday.

In the US, the focus of the market place remains on the “F-Cliff” that is fast approaching. US lawmakers are still fencing on the matter, with not much new Monday. The market place has started to ignore the politician speak. Most now belive the chatter coming from Washington, DC is the norm. The market presently perceives there will be a last-minute agreement among US lawmakers to avoid the F-Cliff.

The market is starting to look ahead to next week’s last Federal Reserve FOMC meeting of the year, on 10-11 December.

The Operation Twist program ends and the FOMC members must decide whether to extend the bond-buying program. Many believe the Fed will continue to purchase US Treasuries and implement QE4 at next week’s meeting. That would be raw-commodity market bullish, including Bullish for the precious metals markets.

The USD index was solidly lower Monday and hit another new 4 wk low. The Greenback Bulls are struggling as the USD index sees its technical position fade on the chart.

Nymex Crude Oil prices traded slightly higher Monday, on some short covering and bargain hunting.

Crude Oil (WTI) 89.04 +0.13 (+ 0.15%)

The Crude Oil Bears still have the slight overall near-term technical advantage.

These 2 Key outside markets were in a Bullish posture for precious metals Monday.

The London PM Gold fixing is 1,720.00 Vs the previous London PM fixing at 1,726.00.

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.