US Gold futures finished pit trade higher Tuesday, posting another 5 month high and tapped above 1,700, the psych mark on follow through buying from Friday's rally.
The precious metals Bulls are empowered after the Bullish speech by US Federal Reserve Chairman Ben Bernanke last Friday.
Dec Gold last traded + 9.20 at 1,696.90 oz.
Spot Gold was last quoted + 2.00 at 1,695.25 oz.
Dec Comex Silver last traded + 0.898 at 32.335 oz.
Following last Friday's commodity and stock market Bullish comments from Bernanke at in Jackson Hole, WT, the Gold and Silver market Bulls are feeling pretty strong, as it now appears more likely the Fed will implement QE-3, and both the Gold and Silver markets are technically strong.
The market is focused on the coming monthly meeting of the European Central Bank on Thursday. It is expected the ECB will announce a fresh EU monetary stimulus plan, which would also likely be at least initially commodity and stock market Bullish. ECB President Mario Draghi said overnight the central bank's purchase of short-dated government bonds is within the bank's mandate.
Friday the important US jobs report will be released.
Asian markets were lower overnight following more downbeat economic news from China. The HSBC's China purchasing managers index in August fell to its lowest level since Y 2009.
European markets were little changed ahead of the ECB meeting Thursday. Spanish and Italian bond yields were lower overnight, on some building optimism the EU debt crisis may at least be stabilizing a bit.
In other overnight news, EU consumer price inflation in July rose at a higher rate than expected, at a 1.8% annual rate, that figure is still low and will not likely have any effect on European Central Bank monetary policy decisions.
The USD index traded firmer Tuesday on some Short covering following recent selling pressure. The Bernanke speech last Friday was Dovish, which is USD Bearish.
The Greenback Bears have the near-term technical advantage as a 6 wk old downtrend line is in place on the daily chart.
The USD index also produced a technically Bearish monthly low close Friday, the last trading day of the month.
Crude Oil prices were weaker Tuesday. Crude Oil Bulls still have the near-term technical advantage.
WTI Crude Oil 95.54 -0.93 ( -0.96%)
The Bearish posture of these 2 Key outside markets did limit gains in the precious metals on Tuesday. The precious metals markets will continue to look closely at how they trade daily for signals.
The London PM Gold fixing is 1,697.00 vs the prior P.M. fixing at 1,691.50.
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.