Gold, Silver, Crude Oil and Copper Trading

Gold futures finished pit trade Monday with good gains, and near highs of the day, tapping a 2 wk high.

The market saw some bargain hunting and Short covering early Monday, after solid gains posted last Friday.

Commodity markets, including the precious metals, got a shot Monday morning when US Federal Reserve Chairman Ben Bernanke put a QE package back on the table.

Apr Gold last traded + 22.50 at 1,684.90 oz.

Spot Gold was last quoted + 22.50 at 1,685.75 oz.

May Comex Silver last traded + 0.483 at 32.755 oz.

Gold and Silver prices came under some light selling pressure early Monday and turned around following Mr. Bernanke's speech to an economic group.

The Fed Chief said the US economy could slow, and needs to show more growth. He also hinted that accommodative Fed monetary policy is still needed to keep the US economic machine running. This led to speculation about a 3rd round of quantitative easing of the US monetary policy.

The USD index immediately sold off after Mr. Bernanke's remarks.

Gold and silver prices then moved above unchanged and to their daily highs. The USD index has seen choppy trading recently as Bulls and Bears struggle for control, with neither gaining much ground.

Crude Oil prices traded both sides of unchanged Monday, but the Crude Oil Bulls still have the overall near-term technical advantage, and this is positive for precious metals.

WTI Crude 106.91 +0.04 (0.04%)

The USD index and Crude Oil will continue to have some daily influence over the precious metals markets.

The European Sovereign debt crisis is creeping back into the financial news headlines this week, as Spain is now in focus amid its financial problems. But, the posture of the market now looks to be that the worst of that situation is over. But, any significant heating up of the EU debt crisis would likely support buying interest in safe-haven Gold.

The London PM Gold fixing was 1,680.25 vs. the previous PM fixing of 1,664.00.

Technically speaking:

Apr Gold futures prices closed near the session high Monday and tapped a fresh 2-wk high. The Bulls and Bears are now back on a level near-term technical playing field as the Bulls have just gained some upside technical momentum.

The Gold Bulls' next Northside price breakout objective is to produce a close above psych resistance at 1,700.00.

The Gold Bears' next near-term Southside price objective is closing prices below Key technical support at last week's low of 1,627.50.

1st resistance is seen at Monday's high of 1,687.80 and then at 1,700.00.

1st support is seen at 1,675.00 and then at 1,665.00.

May Silver futures prices closed near the session high Monday on Short covering and bargain hunting.The Silver Bears still have the slight near-term technical advantage in here. Silver prices are still in a 4 wk old downtrend on the daily bar chart, but now just barely.

The Silver Bulls' next Northside price breakout objective is closing prices above Key technical resistance at last week's high of 33.09 oz.

The next Southside price breakout objective for the Silver Bears is closing prices below Key technical support at last week's low of 31.09.

1st resistance is seen at Monday's high of 32.89 and then at 33.09.

1st support is seen at 32.50 and then at 32.00.

May NY Copper closed + 855 pts 389.40 cents Monday. Prices closed near the session high. A weaker USD index and Bullish US Fed comments were supportive for Copper Monday. The Copper Bulls have the overall near-term technical advantage and regained some upside momentum Monday.

The Copper Bulls' next Northside breakout objective is pushing and closing prices above Key technical resistance at 490.00 cents.

The next Southside price breakout objective for the Copper Bears is closing prices below Key technical support at last week's low of 375.25 cents.

1st resistance is seen at 390.00 cents and then at 392.50 cents.

1st support is seen at 387.50 cents and then at 385.00 cents.

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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