Gold, Silver and Crude Oil Trading
Gold futures prices finished the US pit trade sharply lower Tuesday, tapping a 6-wk low. The precious metals Bulls faded, and need to step up and show new resolve to avoid serious near-term chart damage.
The Key outside markets were Bearish for the precious metals markets on Tuesday, as the USD index was solidly higher and Crude Oil prices were solidly lower.
Apr Gold last traded - 30.10 at 1,673.90 oz.
Spot Gold was last quoted - 33.20 at 1,673.75 oz.
May Comex Silver last traded - 0.84 at 32.855 oz.
Tuesday was a risk-off trading day, and a Bearish factor for most raw commodity markets, including Gold, Silver and Crude Oil.
The European Union sovereign debt crisis was back in focus Tuesday. There are now concerns that the Greek debt swap arrangement agreed upon recently may not occur smoothly or voluntarily. Weak economic data coming out of the EU Monday has also raised worries about the EU slipping back into economic recession. The overall EU debt crisis remains a major underlying Bullish factor for safe-haven Gold IMO.
The USD index traded sharply higher Tuesday as the Greenback Bulls regained some Northside near-term technical momentum. That was Bearish for precious metals.
Meantime, Nymex Crude Oil futures prices traded solidly lower (WTI at 104.93 bbl), which was also a negative factor for Gold and Silver.
The raw commodity markets, including the precious metals, are digesting the somewhat Bearish news Monday that China's Prime Minister has lowered economic growth expectations for the commodity-consuming Giant.
While near-term chart damage has been inflicted recently, the more important longer-term price up-trend in Gold is firmly in place suggesting this dip in prices will become another bargain-hunting buying opportunity.
The London PP Gold fixing was 1,669.00 vs the prior PM fixing of 1,705.00.
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. www.livetradingnews.com