Gold Price Ends Down on Technical Correction, Mild Profit Taking

New York (Oct 8)  Gold ended the US day session modestly lower Thursday, on a technical pullback following recent gains. Some profit taking from the shorter-term futures traders was also featured. December Comex gold was last down $4.10 at $1,144.60 an ounce. December Comex silver was last down $0.329 at $15.765 an ounce.

Traders and investors were awaiting the afternoon release of the minutes of the latest FOMC meeting, hoping for further guidance on just when the Fed might raise U.S. interest rates for the first time in several years. However, most market watchers did not expect the FOMC minutes to have a significant impact on market prices. There has been no shortage of Federal Reserve officials voicing their opinions on U.S. monetary policy in recent weeks.

World stock markets were mixed Thursday, with European markets mostly weaker and Asian equites indexes mixed. China’s stock market opened for the first time this week, following the Golden Week holiday, and the Shanghai index was up 3% on the day.

In other news Thursday, Russia has stepped up its military campaign in Syria by using its navy to bombard anti-Assad government rebels. This has helped to put some risk premium back into a barrel of crude oil, as Nymex crude futures are this week challenging the $50.00 level.

Technically, December gold futures prices closed nearer the session high and saw a corrective pullback from recent gains. Gold bears have the slight overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,156.40. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,103.80. First resistance is seen at this week’s high of $1,153.60 and then at $1,156.40. First support is seen at today’s low of $1,135.90 and then at this week’s low of $1,129.60. Wyckoff’s Market Rating: 4.5

December silver futures prices closed near mid-range today on profit taking after hitting a 3.5-month high Wednesday. The silver market bulls still have the slight near-term technical advantage but faded today and need to show fresh power soon. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at $16.00 and then at this week’s high of $16.115. Next support is seen at today’s low of $15.375 and then at $15.25. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed down 195 points at 234.70 cents today. Prices closed near mid-range today. Copper bears have the firm overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the September high of 249.30 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of 220.25 cents.

Source: KitcoNews