Comex gold prices are ended modestly weaker Thursday on profit taking and book-squaring after scoring another fresh all-time record high of $1,317.50 an ounce, basis the most active December futures contract. A firming U.S. dollar index Thursday also limited buying interest in gold. December Comex gold last traded down $3.20 an ounce at $1,307.10. Spot gold was last quoted down $4.00 at $1,305.50.
Gold backed off its highs at mid-morning, when the U.S. dollar firmed up following stronger-than-expected readings on U.S. gross domestic product and from a Chicago purchasing managers survey. The U.S. dollar index hit a fresh 8.5-month low early Thursday. The dollar index remains very weak, technically. There are still no early technical clues that the index is near a market bottom. As long as the U.S. dollar index is in an overall price downtrend on the charts, look for gold prices to continue to trend sideways to higher.
Thursday is the last trading day of the month of September and the last trading day of the quarter. That did bring in some profit-taking and book-squaring pressure in the gold and silver markets before the end of the trading day.
There are some analysts presently predicting a market top is close at hand for the gold market because of all the media attention given the yellow metal recently. Commodity markets that do garner keener news media attention are generally in the final stages of a bull market run. However, in gold's case it can be correctly argued that gold has been in the media spotlight for months, or longer. In 2008, gold prices started reaching to new heights after a 28-year hiatus. Yet, gold prices have continued to trend higher.
Reports overnight said the largest gold exchange traded fund, SPDR Holdings, added over 5 tons to its holdings Tuesday.
The London P.M. gold fixing was $1,307.00 versus the previous P.M. fixing of $1,307.50 an ounce.
Technically, December Comex gold futures saw action Thursday score a mildly bearish "outside day" down on the daily bar chart, whereby the high was higher and the low was lower than the previous session's trading range, with a lower close. If there is solid follow-through selling pressure on Friday, then a bearish "key reversal" down could be confirmed, which would be one early technical clue that a near-term market top is in place.
Gold bulls have the solid overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Bulls' next near-term upside technical objective is to produce a close above psychological resistance at $1,325.00. Bears' next near-term downside price objective is closing prices below solid technical support at this week's low of $1,276.20. First resistance is seen at today's all-time high of $1,317.50 and then at $1,320.00. Support is seen at $1,300.00 and then at Thursday's low of $1,297.00. Wyckoff's Market Rating: 8.0.
December silver futures closed down 22.2 cents at $21.73 an ounce Thursday. Prices closed nearer the session low after scoring another fresh 30-year high early on. Profit-taking pressure and end-of-the-month and end-of-the-quarter book-squaring were also featured in silver Thursday. Price action Thursday also scored a mildly bearish "outside day" down on the daily bar chart, whereby the high was higher and the low was lower than the previous session's trading range, with a lower close. If there is solid follow-through selling pressure on Friday, then a bearish "key reversal" down could be confirmed, which would be one early technical clue that a near-term market top is in place. A firmer U.S. dollar index also limited buying interest in silver Thursday.
Silver bulls still have the solid near-term technical advantage. Prices are in a steep five-week-old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at $21.00. Bulls' next upside price objective is producing a close above solid technical resistance at $22.50 an ounce. First resistance is seen at $22.00 and then at Thursday's high of $22.125. Next support is seen at Thursday's low of $21.565 and then at $21.50. Wyckoff's Market Rating: 8.5.
December N.Y. copper closed down 65 points at 365.50 cents Thursday. Prices closed nearer the session high. A firmer U.S. dollar limited buying interest in copper Thursday. The copper bulls still have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Bulls' next upside objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at Wednesday's contract high of 367.35 cents and then at 370.00 cents. First support is seen at Thursday's low of 362.00 cents and then at 360.00 cents. Wyckoff's Market Rating: 8.0.
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