Gold Ends Near Steady In Lackluster, Pre-Holiday Trading

Gold prices ended the U.S. day session near unchanged Tuesday. Chart consolidation was a featured in a ho-hum trading session as it appears U.S. traders are focused upon the upcoming Thanksgiving holiday Thursday. The U.S. dollar index hovering near a four-year high continues to provide a bearish anchor for the precious metals. February Comex gold was last up $1.10 at $1,197.70 an ounce. Spot gold was last down $0.80 at $1,198.00. March Comex silver last traded up $0.175 at $16.61 an ounce.

There was a heavier slate of U.S. economic data released Tuesday, highlighted by the second-quarter report on gross domestic product. The GDP report came in at up 3.9%, on an annual basis, which was well above market expectations for a rise of 3.3%. Gold saw an initial dip on the GDP figure, but then quickly rebounded on short covering and bargain hunting on the dip.

Other U.S. data released Tuesday included the U.S. house price indexes, the Richmond Fed business survey, and the S&P/Case-Shiller home price index. The Richmand Fed survey came in on the weak side of expectations, which on this day somewhat offset the stronger GDP report.

U.S. markets activity is likely to start to wind down Wednesday, ahead of the Thanksgiving holiday on Thursday. Typically, Friday finds one of the lightest-volume trading days of the year for U.S. markets.

In overnight news the OECD again warned that economic stagnation in the European Union is problematic for the entire global economic system. The OECD urged the European Central Bank to enact still more monetary policy stimulus measures.

The market place is looking ahead to Thursday’s OPEC meeting. Some believe the beleaguered oil cartel could reduce its overall daily oil production quota, or at least call for strict adherence to existing quotas, most of which are ignored by OPEC nations. Nymex crude oil futures are trading not far above the recent three-year low. This could be a “make-or-break meeting for OPEC—or at least its most important meeting in years. Saudi Arabia and Iran will be the key players at the OPEC meeting.

The London P.M. gold fix was $1,199.00 versus the previous London A.M. fixing of $1,202.25.

Technically, February gold futures prices closed near mid-range again today. Bears still have the overall near-term technical advantage. Prices are in a 4.5-month-old downtrend on the daily bar chart. However, the bulls are working on establishing a near-term uptrend from the November low. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,225.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,174.70. First resistance is seen at Monday’s high of $1,204.50 and then at last week’s high of $1,208.20. First support is seen at today’s low of $1,190.00 and then at $1,186.70. Wyckoff’s Market Rating: 3.0

March silver futures prices closed nearer the session low but did hit a four-week high early on today. The silver bears still have the overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. However, the bulls are working on establishing a near-term price uptrend from the November low. Silver bulls’ next upside price breakout objective is closing 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 last week’s low of $15.93. First resistance is seen at today’s high of $16.755 and then at $17.00. Next support is seen at Monday’s low of $16.305 and then at $16.16. Wyckoff's Market Rating: 3.0.

March N.Y. copper closed down 380 points at 296.80 cents today. Prices closed near the session low and closed at an eight-month low close today. The bears have the solid near-term technical advantage and gained more power today. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at last week’s high of 307.20 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the October low of 295.00 cents. First resistance is seen at 300.00 cents and then at today’s high of 302.45 cents. First support is seen at the November low of 296.30 cents and then at 295.00 cents. Wyckoff's Market Rating: 2.0.