Precious Metals Overview

Comex gold prices ended the U.S. day session modestly lower in quieter trading Monday. A major storm has shut down much of the U.S. eastern seaboard, including New York City. All New York markets closed early or did not open at all Monday, and all New York markets are closed Tuesday. The key “outside markets” were in a bearish posture for the precious metals Monday, as the U.S. dollar index was firmer and crude oil prices were lower. December gold last traded down $3.70 at $1,708.20 an ounce. Spot gold was last quoted down $3.40 at $1,708.25. December Comex silver last traded down $0.311 at $31.725 an ounce. The main news event in the market place to start the new trading week is Hurricane Sandy, which is lashing the U.S. eastern coast. The New York Stock Exchange and New York futures exchanges all closed Monday, although there was some electronic trading of New York markets that occurred early Monday. Still, with New York City virtually shut down early this week, along with some of the U.S. government offices in Washington, D.C., trading activity will likely be lighter early this week, or even most of the week. Traders are awaiting Friday’s U.S. employment report, which is arguably the most important economic event of the week. However, the major storm could even delay that report. Some U.S. economic data due for release Monday was not released. The U.S. dollar index traded modestly higher Monday. The index Friday hit a six-week high and closed at a bullish weekly high close, on some perceived safe-haven demand. The U.S. dollar bears still have the overall near-term technical advantage, but the greenback bulls are gaining upside technical momentum. Meantime, Nymex crude oil prices were lower Monday and hovering not far above the recent 13-week low. The crude oil bears have the overall near-term technical advantage. These two key “outside markets” will continue to have a significant daily influence on gold and silver prices. Technically, December gold futures prices closed an abbreviated session nearer the session low Monday. The gold bulls still have the slight overall near-term technical advantage need to show fresh power soon to avoid serious near-term chart damage. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,731.20. Bears’ next near-term downside breakout price objective is closing prices below psychological support at $1,700.00. First resistance is seen at Monday’s high of 1,717.80 and then at $1,725.00. First support is seen at Monday’s low of $1,706.20 and then at last week’s low of $1,698.70. December silver futures prices closed nearer the session low Monday. The silver bulls are on a level near-term technical playing field with the bears. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $32.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $31.00. First resistance is seen at $32.00 and then at Monday’s high of $32.23. Next support is seen at last week’s low of $31.535 and then at $31.315.
Great Southern Coins

DISCLAIMER: Trading precious metals could involve sizable risk. Sizable fluctuations in prices can and do occur frequently. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by Great Southern Coins that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future results. Information provided on this site is intended solely for informative purposes and is obtained from sources believed reliable.

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