Gold, Silver See Solid Rallies On Safe-Haven Demand, Rising Oil
(Kitco News) - Gold and silver prices were ending the U.S. day session with good gains Monday. The metals were supported by a combination of safe-haven demand and surging crude oil prices that have hit a two-year high. December Comex gold was last up $13.30 an ounce at $1,282.50. December Comex silver was up $0.401 at $17.235 an ounce.
The marketplace is just a bit unnerved to start the trading week, as a major shake-up occurred in Saudi Arabia’s ruling system over the weekend. Saudi princes and businessmen were arrested to weed out corruption, according to the Saudi Kingdom. The news helped to lift gold and silver, also gave oil prices a boost.
Nymex and Brent crude oil futures prices rallied sharply today and hit two-year highs. The rally in the oil market, arguably the leader of the raw commodity sector, is an underlying bullish element for the metals markets. If oil prices continue to rally, many raw commodity markets, including the precious metals, will be pulled along for the ride. However, the sledding will get much tougher for the oil market bulls as prices push toward $60.00 a barrel.
The other key “outside market” on Monday saw the U.S. dollar index weaker. The greenback bulls have the slight overall near-term technical advantage. The U.S. currency has been boosted recently on the prospects of the U.S. government passing tax-cuts legislation that would give a boost to businesses and the economy. If the U.S. dollar continues to appreciate it will be a drag on the precious metals markets. Reason: Most metals on the world markets are priced in U.S. dollars. A rising dollar makes those metals more expensive to purchase in non-U.S. currency.
Technically, December gold futures prices closed near the session high today. Bulls and bears are still on a level overall near-term technical playing field but the bulls gained momentum today. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80. First resistance is seen at last week’s high of $1,285.10 and then at $1,290.00. First support is seen at $1,275.00 and then at $1,270.00. Wyckoff's Market Rating: 5.0
December silver futures prices closed near the session high today. The silver bulls have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.345. First resistance is seen at today’s high of $17.27 and then at $17.50. Next support is seen at $17.00 and then at today’s low of $16.795. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed up 400 points at 315.80 cents today. Prices closed nearer the session high. The key “outside markets” were in a bullish posture for copper today as the U.S. dollar index was weaker and crude oil prices were sharply higher and hit a two-high. The copper bulls have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 325.95 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen last week’s high of 318.30 cents and then at 320.00 cents. First support is seen at today’s low of 311.15 cents and then at 310.00 cents. Wyckoff's Market Rating: 6.5.