By Jim Wyckoff of Kitco News
Comex gold futures prices ended slightly higher Thursday, as a weaker U.S. dollar index pushed prices within an eyelash of the $1,400.00 level before backing off on some late profit-taking pressure. February Comex gold last traded up $0.20 at $1,388.50 an ounce. Spot gold last traded up $0.90 at $1,388.00.
The U.S. dollar index was under profit-taking selling pressure Thursday, after hitting a 2.5-month high earlier in the week. The Euro currency rallied on Thursday in the wake of a European Central Bank meeting, which in turn pressured the greenback. The ECB implied that it would extend its own quantitative easing program, by purchasing more EU bonds--much like the U.S. Federal Reserve announced a few weeks ago.
However, many reckoned the ECB would take a more aggressive quantitative easing stance, and when it did not that was deemed Euro-currency-bullish. Sovereign debt problems in the European Union have been bullish for the gold market for most of 2010, and those EU problems are not likely to go away any time soon.
Traders are awaiting Friday morning's U.S. employment report, which is expected to show a strengthening U.S. jobs sector. The key non-farm payrolls figure is expected to have risen by 144,000 in November.
The London P.M. gold fixing was $1,389.00 versus the previous P.M. fixing of $1,385.50 an ounce.
Technically, February gold futures closed nearer the session low Thursday after hitting a fresh three-week high early on. Prices came within an eyelash of hitting major psychological resistance at $1,400.00 an ounce, before backing off. The gold market bulls still have the solid near-term technical advantage. A four-month-old uptrend is in place on the daily bar chart. Bulls' next near-term upside technical objective is to produce a close above psychological resistance at $1,400.00. Bears' next near-term downside price objective is closing prices below solid technical support at $1,352.00. First resistance is seen at $1,400.00 and then at $1,410.00. Support is seen at Thursday's low of $1,385.10 and then at $1,380.00. Wyckoff's Market Rating: 8.0.
March silver futures closed up 23.2 cents at $28.645 an ounce Thursday. Prices closed near mid-range and hit another fresh three-week high. The key "outside markets" were in a bullish posture for silver Thursday, as the U.S. dollar index was lower, while crude oil and the U.S. stock indexes were higher. The silver bulls have the solid near-term technical advantage. Silver prices are in a four-month-old uptrend on the daily bar chart.
The next downside price objective for the bears is closing prices below solid technical support at $27.00. Bulls' next upside price objective is producing a close above solid technical resistance at the November contract and 30-year high of $29.405 an ounce. First resistance is seen at Thursday's high of $29.08 and then at $29.405. Next support is seen at Thursday's low of $28.33 and then at $28.00. Wyckoff's Market Rating: 8.5.
March N.Y. copper closed up 260 points at 397.35 cents Thursday. Prices closed near mid-range today and hit a fresh three-week high. The key "outside markets" were in a bullish posture for copper Thursday, as the U.S. dollar index was lower, while crude oil and the U.S. stock indexes were higher. Copper bulls are gaining fresh upside technical momentum.
A potentially bearish pennant pattern that had formed on the daily bar chart has been negated. Bulls' next upside objective is pushing and closing prices above solid technical resistance at the November high of 408.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at 400.00 and then at 405.00 cents. First support is seen at 395.00 cents and then at Thursday's low of 393.15 cents. Wyckoff's Market Rating: 8.0.
