(Kitco News) - Comex December gold futures prices
are trading modestly higher in early U.S. dealings Thursday, on some
follow-through buying strength from the solid gains posted on
Wednesday. The market continues to consolidate recent choppy day-to-day
trading activity. Gold is also seeing bargain hunters step up and also
seeing better physical demand coming out of Asia. December gold last
traded up $12.20 an ounce at $1,653.80 an ounce. Spot gold last traded
up $9.30 an ounce at $1,652.50. December Comex silver last traded up
$0.878 at $31.21 an ounce.
U.S. and European stock markets are firmer again early Thursday
due to some investor optimism regarding developments coming out of the
European Union, regarding its sovereign debt crisis. There are reports
this week that EU monetary officials are working to shore up the weak
European banking sector--in case Greece should actually default on its
debt obligations in the near term. The world stock markets are also
starting to focus on other matters and have mostly factored into prices
the messy EU debt situation. Still, the EU debt crisis continues to be
a major underlying bullish factor for the gold market.
The U.S. dollar index is trading firmer Thursday morning. The
dollar index bulls have the solid overall near-term technical
advantage, which has been a major underlying bearish factor for the
precious metals recently.
Crude oil futures prices are trading higher again Thursday, on
more short covering. Crude oil bulls have gained some fresh upside
technical momentum, which is also bullish for the precious metals. If
crude can hold its early gains into the close Thursday, it would begin
to suggest a near-term low in crude was put in place this week. That
would be an underlying bullish factor for the precious metals.
U.S. economic data due for release Thursday is light and
includes the weekly jobless claims report. Traders are looking ahead to
Friday's key U.S. employment report. The important non-farm payroll
figure in the jobs report is seen coming in at up 60,000.
The London A.M. gold fixing was $1,649.50 versus the previous P.M. fixing of $1,617.00.
Technically, December gold futures bears still have the slight
near-term technical advantage. A bearish pennant pattern still could be
playing out on the daily bar chart. Prices are also still in a
four-week-old downtrend on the daily bar chart. Bulls' next upside
technical objective is to produce a close above solid technical
resistance at $1,705.40. Such would provide the bulls with fresh upside
technical momentum to suggest an uptrend can be restarted. Bears' next
near-term downside price objective is closing prices below strong
technical support at the September low of $1,535.00. Such would produce
fresh, serious chart damage to then suggest a fresh leg down in
prices. First resistance is seen at the overnight high of $1,656.80 and
then at this week's high of $1,681.50. First support is seen at the
overnight low of $1,636.60 and then at $1,625.00.
December silver futures prices are still in a six-week-old
downtrend on the daily bar chart. A bearish pennant pattern has also
formed on the daily bar chart for silver. Silver bulls' next upside
price objective is producing a close above strong technical resistance
at last week's high of $33.585 an ounce. Such would then suggest the
silver market has put in a near-term low. The next downside price
breakout objective for the bears is closing prices below solid
technical support at last week's low of $26.15. First resistance is
seen at the overnight high of $31.775 and then at $32.00. Next support
is seen at the overnight low of $30.24 and then at $30.00.
