The U.S. dollar index traded firmer Wednesday, which was modestly bearish for gold. The dollar index is in a four-week-old price uptrend on the daily bar chart and technical odds are increasing the index has put in at least a near-term low. The greenback has benefited recently from ongoing financial woes in the European Union.
Rising U.S. Treasury bond and note yields this week have also boosted the U.S. currency and helped to somewhat pressure gold. The higher returns on U.S. government debt have served to pull in some fresh investor demand for U.S. Treasuries and away from gold. The London P.M. gold fixing was $1,385.50 versus the previous P.M. fixing of $1,420.00 an ounce.
Technically, February Comex gold futures prices closed nearer the session low Wednesday. There was also strong follow-through selling pressure in gold on Wednesday, from solid losses seen Tuesday, and a significantly bearish "key reversal" down was confirmed on the daily bar chart. This is one early clue that a near-term market top is in place. However, a "near-term" market top does not at this point suggest that a major or longer-term market top is in place in gold. The key reversal does at least suggest prices are due for a decent downside correction in the near term--possibly into the end of the year.
Importantly, price uptrends on the charts are still fully in place for gold. The gold market bulls still have the overall near-term technical advantage. A four-month-old uptrend is still in place on the daily bar chart. Bulls' next near-term upside technical objective is to produce a close above strong technical resistance at Tuesday's all-time high of $1,432.50. Bears' next near-term downside price objective is closing prices below solid technical support at $1,350.00. First resistance is seen at $1,390.00 and then at $1,400.00. Support is seen at Wednesday's low of $1,372.10 and then at $1,360.00. Wyckoff's Market Rating: 7.0.
March silver futures closed down 160.7 cents at $28.17 an ounce Wednesday. Prices closed near the session low and saw heavy profit-taking pressure from recent gains. No serious chart damage occurred in silver Wednesday, but the bulls did fade badly and need to show fresh power soon. The firmer U.S. dollar index did help push silver down Wednesday.
The silver bulls still have the overall near-term technical advantage. Silver prices are still 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 this week's high of $30.75 an ounce. First resistance is seen at $28.50 and then at $29.00. Next support is seen at Wednesday's low of $28.01 and then at $27.75. Wyckoff's Market Rating: 7.5.
March N.Y. copper closed up 535 points at 410.30 cents Wednesday. Prices closed nearer the session high and hit a fresh contract and 2.5-year high close. Prices this week have pushed above major psychological resistance at $4.00, which is bullish. Copper bulls have fresh upside technical momentum. Bulls' next upside objective is pushing and closing prices above solid technical resistance at 425.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 390.00 cents. First resistance is seen at this week's contract high of 413.15 and then at 415.00 cents. First support is seen at 408.75 cents and then at 405.00 cents. Wyckoff's Market Rating: 8.5. Articel from commodityonline.com Read More... For the latest updates PRESS CTR + D or visit Stock Market news Today
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