The Commodities Report: Gold, Silver and Crude Oil close higher on bargain hunting, Short covering and lower USD
Gold futures prices finished the US day session solidly higher Monday on bargain hunting and Short covering following last week decline.
The market Monday was upbeat following an impressive start to the US Holiday shopping season and on renewed expectations that the European Union's sovereign debt crisis is getting fixed.
The risk-on trader sentiment in the market place Monday was Bullish for the overall raw commodity sector, including precious metals.
The US Dollar index was also lower, another Bullish factor for Gold and Silver Monday.
Feb Gold last traded + 26.30 at 1,714.90 oz.
Spot Gold last traded + 30.20 at 1,711.00 oz.
Mar Comex Silver last traded + 1.148 at 32.24 oz.
The market saw Short covering and bargain-hunting buying interest overall Monday, as traders and investors came back from Thanksgiving happy.
Black Friday, the unofficial start of the US Holiday shopping season jumped to a good start.
On the EU front: there are some more plans being discussed by Key EU officials, the US, and the IMF.
Italian bond yields are still hovering close to 7%, but have backed off some from last week's highs.
The Gold market has been acting more like a risk asset than like a safe-haven asset, to the consternation of Gold market Bulls. But on this risk-on trading day, Gold Bulls are ruling the action.
The US Dollar index traded lower Monday morning, on a profit-taking, corrective pullback after hitting another 7-week high on Friday. The Dollar index Bulls still have some upside near-term technical momentum as prices are in a near-term up-trend on the daily chart.
The London P.M. Gold fixing was 1,714.00 vs the prior P.M. fixing of 1,688.50.
The Crude Oil complex traded sharply higher during the early morning hours. Jan Crude Oil prices surged above 100.00 bbl, but turned toward the lower portion of the day's range into mid-session.
Jan Heating Oil prices established a higher high on the session, above 3.00 but struggled to hold those early gains.
Nat Gas prices were higher during the initial morning hours, but they reversed into negative territory by mid-morning.
Some traders pointed to warmer early-winter temperatures and Dec contract expiration today as factors behind the volatile trade.
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.