08/14/2013

P.M. Kitco Metals Roundup: Gold Ends Higher on More Short Covering, Technical Bounce
Wednesday August 14, 2013 2:10 PM
(Kitco News) - Comex gold futures prices ended the U.S. day session moderately higher in quieter, summertime trading Wednesday. An upside corrective technical bounce after Tuesday’s selling pressure and some bargain hunting were featured. Traders are awaiting fresh, significant fundamental inputs for the gold and silver markets. December gold was last up $11.80 at $1,332.30 an ounce. Spot gold was last quoted up $11.40 at $1,333.40. September Comex silver last traded up $0.387 at $21.725 an ounce.
Wednesday’s producer price index for July came in tamer than expected, at unchanged versus June, and provided little impetus to the market place. Many believe upcoming U.S. data will show an improving U.S. economy--one that is possibly strong enough to begin to wean it from the Fed’s monthly bond-buying program, also known as quantitative easing. Many also look for the Federal Reserve to announce it is “tapering” its bond buying at its next FOMC meeting in September. Many markets could remain confined to trading ranges until the September FOMC meeting.
The market place is keeping a close eye on developments in Egypt. Anti-government demonstrations in Cairo turned deadly Wednesday, with 10 civilians reportedly killed. An escalation of violence in Egypt could support safe-haven demand for gold.
In other news Wednesday, the European Union has emerged from its six-quarter economic recession, EU data showed Wednesday. The EU second-quarter GDP rose 0.3% from the first quarter. However, the year-on-year figure was down 0.7%. The German government auctioned its 10-year bond Wednesday and it fetched a yield of 1.80%, which is the highest level in a year and a half. That also suggests European investors have better feelings about the recovery of the European Union economy. Recent EU data has shown slight improvement, overall.
The U.S. dollar index was slightly lower Wednesday. The greenback bears still have the overall near-term chart advantage, but the bulls are having a good week this week. Nymex crude oil futures prices were slightly weaker Wednesday. The crude oil bulls still have the overall near-term technical advantage.
The London P.M. gold fix is $1,326.50 versus the previous P.M. fixing of $1,328.50.
Technically, December gold futures prices closed nearer the session high Wednesday. Gold bears still have the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,271.80. First resistance is seen at this week’s high of $1,343.70 and then at $1,350.00. First support is seen at $1,325.00 and then at this week’s low of $1,313.50. Wyckoff’s Market Rating: 3.0
September silver futures prices closed nearer the session high Wednesday and hit another fresh seven-week high. Prices have recently seen a bullish upside “breakout” from a recent sideways trading range. Bulls have good upside technical momentum. Bulls and bears are now on a level overall near-term technical playing field. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $22.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $20.00. First resistance is seen at Wednesday’s high of $21.825 and then at $22.00. Next support is seen at Wednesday’s low of $21.265 and then at $21.00. Wyckoff's Market Rating: 5.0.
September N.Y. copper closed up 170 points at 333.40 cents Wednesday. Prices closed nearer the session high and closed at a fresh nine-week high close. Copper bulls have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the June high of 341.25 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 317.50 cents. First resistance is seen at this week’s high of 334.30 cents and then at 336.00 cents. First support is seen at 330.00 cents and then at this week’s low of 328.40 cents and then at 325.00 cents. Wyckoff's Market Rating: 6.0.