Gold Price Sees Decent Gains On Bargain Buying, Short Covering
New York (Oct 25) Gold prices ended the US day session with good gains Tuesday, supported by short covering in the futures market and perceived value-buying in the cash market. The U.S. dollar index backing well off its daily high as trading progressed also encouraged the precious metals bulls today. December Comex gold was last up $10.10 an ounce at $1,273.80. December Comex silver was last up $0.176 at $17.78 an ounce.
The key “outside markets” on Tuesday saw the U.S. dollar index hit a seven-month high early on, but then the index backed down to trade slightly lower in afternoon dealings. The recent strong greenback has somewhat limited buying interest in the raw commodity markets. Meantime, Nymex crude oil prices were lower Tuesday in choppy trading. Oil futures are now trading right arount the key $50.00-a-barrel level.
Reports Tuesday said there has been a recent large outflow of funds from gold-backed exchange traded funds (ETFs).
The big data point for this week will be Friday’s U.S. gross domestic product report for the third quarter, which is expected to see a rise of 2.5%, year-on-year. Many markets could become more volatile in the immediate aftermath of that report.
Technically, December gold futures prices closed nearer the session high and closed at a three-week high close today. The gold bears still have the overall near-term technical advantage. However, the sideways price action the past three weeks could be “basing” action that puts in a market bottom. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,243.20. First resistance is seen at last week’s high of $1,275.90 and then at $1,280.00. First support is seen at this week’s low of $1,260.10 and then at $1,250.00. Wyckoff’s Market Rating: 4.0
Live 24 hours silver chart [ Kitco Inc. ]
December silver futures prices closed nearer the session high today and closed at a three-week high close. The silver market bears still have the overall near-term technical advantage. However, the sideways price action of the past three weeks could be “basing” that puts in a market bottom. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.46 an ounce.
Source: KitcoNews
