Gold Ends Steady-Weak as Bull Run in Equities Continues to Limit Buying Interest

P.M. Kitco Metals Roundup: Gold Ends Steady-Weak as Bull Run in Equities Continues to Limit Buying Interest

Gold prices ended the U.S. day session steady to modestly lower Monday. The yellow metal did move up from its daily lows by the close, as the U.S. dollar index moved below unchanged to its daily low. February Comex gold was last down $0.70 at $1,197.70 an ounce. Spot gold was last down $4.80 at $1,197.75. March Comex silver last traded up $0.011 at $16.47 an ounce.

U.S. stock indexes were firmer to start the trading week and hovering near their recent record or multi-year highs. The major bull run in equities worldwide is a major negative for the competing asset class raw commodities, including precious metals.

Bulls  continue to find it very difficult to shake off the negative impact of a stronger U.S. dollar against the other major world currencies. The U.S. dollar index notched another four-year high in overnight trading, before some mild profit taking set in during the U.S. trading session.

It could be a quieter trading week in the U.S. as the Thanksgiving holiday is Thursday.

European shares rallied overnight on the lingering bullish impact of fresh monetary stimulus announced by the European Central Bank late last week. Most world stock market bulls were also cheered by Friday’s surprise monetary policy easing by China’s central bank. With the world’s major economies awash in liquidity, the stock markets have been the main beneficiaries of such. But many veteran market watchers remain worried about the specter of problematic price inflation arising at some point down the road. I would be very surprised to find that years of very easy money policies by the major central banks find their economies going unpunished for such.

In overnight news the closely watched German Ifo Institute’s business confidence survey showed a rise to 104.7 in November from 103.2 in October. This was the first rise in months. The market place expected a reading of 103.0.

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. Saudi Arabia and Iran will be the key players at the OPEC meeting.

The much-anticipated Swiss gold referendum vote is on Nov. 30. The “Save Our Gold” measure would require the Swiss National Bank to hold 20% of its assets in gold reserves. Early polls suggest the measure will not pass.

The London P.M. gold fix was $1,197.50 versus the previous London A.M. fixing of $1,196.00.

Technically, February gold futures prices closed near mid-range. 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 $1,200.00 and then at today’s high of $1,204.50. First support is seen at today’s low of $1,192.80 and then at Friday’s low of $1,186.70. Wyckoff’s Market Rating: 3.0

March silver futures prices closed nearer the session high. The silver bears 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 the November low of $15.085. First resistance is seen at last week’s high of $16.66 and then at $16.715. Next support is seen at Friday’s low of $16.16 and then at $16.00. Wyckoff's Market Rating: 2.5.

March N.Y. copper closed down 220 points at 300.70 cents today. Prices closed nearer the session low. The bears have the near-term technical advantage. 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 302.50 cents and then at today’s high of 304.55 cents. First support is seen at 300.00 cents and then at 299.15 cents. Wyckoff's Market Rating: 2.5.