Gold Silver and Crude Oil Trading Recap

US precious metals futures tapped multi-month lows on Thursday, pressured by a stronger USD, declining interest from speculators who chose to cash out their Gold and Silver positions, or place reserves strengthening US equities coming in the this year's close.

Feb Gold futures declined for a 9th straight session Thursday, tapping marks last seen in July, prior to closing off 21.50 at 1542.60 oz.

Mar Comex Silver hit a 3-mo low early in the session, but closed near the highs with net gains of 0.156 at 27.39 oz.

Spot Gold futures fell about 4% over the past 2 trading sessions for a steady 6-wk decline.

Some notable players in the space have said publicly they have been actively selling off their Gold holdings recently, and the US Mint's sales of American Eagle Gold bullion coins also is said to have dropped to a nearly 3.5 yr low in November, reflective of a slowing physical demand.

The US Mint also announced Thursday that with sufficient Gold and Silver now on hand to meet anticipated coin demand, it will not allocate sales to dealers in early Y 2012, as has been the case for several years, due to unprecedented demand and a lack of Gold bullion supply.

As the USD weakened on Thursday Gold and Silver gained. Weakness in the value of the US Dollar index Thursday looks to have been drawn from news that initial claims for state unemployment benefits increased by 15,000, to a seasonally adjusted 381,000 persons last week, surpassing expectations.

London Gold was last fixed at 1531 Thursday, down 40 from the LBMA's PM fix Wednesday.

Technically, Feb Gold futures prices ended near the mid-range of Thursday's 39.90 trading range, penetrating initial and secondary chart resistance at the 1543.30 and 1550 marks.

Mar Silver futures traded in a wide 1.33 range on the session, and successfully closed above its initial resistance at the 27.16 mark.

Feb Crude Oil futures last traded with gains of 0.18 to 99.54 bbl, despite the release of recent government and industry reports which showed that Crude Oil and Gasoline inventories are each rising.

Much of the support for Crude Oil markets is attributed to Iranian threats to shut down shipping through the strategically important Strait of Hormuz, if Western nations impose additional sanctions on that Nation in response to Iran's alleged attempts to develop a nuclear weapons arsenal. Not likely IMO. 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.