Gold Ends Near Unchanged; Fresh Inputs Needed
Traders and investors are awaiting news coming out of this week’s OPEC meeting in Abu Dhabi. Many believe some OPEC members are cheating on their production quotas, and the meeting will address that matter.
The U.S. dollar index traded weaker Monday, after a solid rally Friday following an upbeat U.S. jobs report. The dollar index bears are still in firm near-term technical control of the dollar index as prices are still in a solid price downtrend on the daily chart.
Meantime, Nymex crude oil futures were lower Monday and trading just above $49.00 a barrel.
U.S. economic data released Monday was light and insignificant, but the data pace picks up steam starting on Tuesday. As always, the marketplace will pay close attention to a couple of speeches delivered by Fed officials this week.
Technically, December gold futures bulls still have the overall near-term technical advantage but are now fading a bit and need to show some fresh power soon. Bulls’ next upside technical objective is pushing prices above chart resistance at last week’s high of $1,280.30. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,250.00. First resistance is seen at the overnight high of $1,265.60 and then at $1,270.00. First support is seen at last week’s low of $1,259.80 and then at $1,255.00. Wyckoff’s Market Rating: 6.0
September silver prices hit a three-week low today. Bears have regained the overall near-term technical advantage after the recent sell off that included a bearish weekly low close on Friday. A four-week-old uptrend on the daily bar chart has been negated. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $16.28 and then at $16.50. Next support is seen at $16.00 and then at $15.75. Wyckoff's Market Rating: 4.0.