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Comex Gold Prices Steady-Firm Early as U.S. Dollar Slumps

 

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By Jim Wyckoff

Comex gold futures prices are trading near steady to firmer Thursday morning, on a corrective bounce and consolidation from solid losses absorbed on Tuesday. Some fresh buying interest from bargain-hunters has been featured the past two days, in the wake of Tuesday’s losses. A solidly lower U.S. dollar index that notched another fresh three-month low overnight is also limiting selling interest in the gold market Thursday. December gold last traded up $1.10 an ounce at $1,163.50. Spot gold was last quoted down $0.60 at $1,163.50.

Reports continue to say demand for physical gold is good at the lower price levels, which is keeping a price floor under the market, at least for now. However, wire service reports overnight also said investor demand for gold via exchange traded funds (ETF’s) continues to wane. SPDR Gold Shares holdings dropped by 18.55 metric tonds Wednesday, to 1,282.38 tons.

Gold futures prices this week hit a fresh three-month low of $1,159.30, basis December Comex futures, and have seen quieter trading action and a pause since then. This pause does not favor the gold market bulls.

The U.S. stock indexes are trading firmer early Thursday, while crude oil prices are trading slightly lower. Neither market is providing much impetus to the gold market. However, the overall postures of the commodity markets and the U.S. and European stock markets does suggest investor risk appetite is on the upswing, which is an underlying bearish factor for gold, as it takes away safe-haven investment demand for the yellow metal.

U.S. data due out Thursday includes the weekly jobless claims report.

The London A.M. gold fix was $1,166.00 versus the previous P.M. fixing of $1,157.00.

Technically, December Comex gold futures bears still have the near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart.

For the gold market bulls to begin to regain some fresh upside near-term technical momentum, they will have to push and close December futures prices back above solid chart resistance and psychological resistance at $1,200.00 an ounce. The bears’ next downside price objective is producing a close in December gold futures below solid chart support at $1,150.00.

For December gold, shorter-term technical resistance is seen at the overnight high of $1,172.00 and then at $1,178.80. Buy stops likely reside just above those levels. Sell stops likely reside just below chart support at this week’s low of $1,159.30 and then at $1,155.00. Today’s key near-term Fibonacci pivot level for December gold: $1,160.00.

Comex silver futures are trading slightly lower Thursday morning, on more follow-through pressure from Tuesday’s big losses. December silver last traded down 5.1 cents at $17.545 an ounce. Prices are still in a six-week-old downtrend on the daily bar chart and the bears have gained fresh downside technical momentum this week.

The next near-term upside price objective for the silver market bulls is to push and close December Comex futures prices above solid chart resistance at last week’s high of $18.335 an ounce. The next downside price objective for the silver bears is to push and close December silver prices below solid technical support at the June low of  $17.335.

December silver finds shorter-term technical resistance at the overnight high of $17.70 and then at $17.85. Buy stops likely reside just above those levels. Shorter-term technical support for December silver is located at Wednesday’s low of $17.40 and then at $17.335. Sell stops are likely placed just below those levels. Today’s key Fibonacci pivot level for December silver futures is located at $17.34.

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