09/03/2013

A.M. Kitco Metals Roundup: Gold Slightly Lower Amid Bearish Outside Markets
Tuesday September 3, 2013 8:12 AM
(Kitco News) - Gold prices are slightly lower in early U.S. trading Tuesday as buying interest is being limited by a higher U.S. dollar index and weaker crude oil prices. However, gold prices are not straying too far from unchanged as major economic data is due out in the coming days and there are still geopolitical tensions in the market place. December Comex gold was last down $1.30 at $1,394.80 an ounce. Spot gold was last quoted down $10.90 at $1396.75. December Comex silver last traded up $0.752 at $24.265 an ounce.
The markets are a bit jittery Tuesday amid continued U.S. saber-rattling against Syria. Russian news agencies reported overnight that two missiles were launched in the Mediterranean Sea. Those reports caused European stock markets to shudder and gold prices to briefly rally. However, it appears the U.S. is still only considering striking Syria with its military power, as President Obama will go to Congress to get its approval for military action.
The U.S. Labor Day holiday saw U.S. markets closed Monday. Now, as U.S. traders come back to work they have a full plate of events that lie just ahead. The important U.S. jobs report is out on Friday. The Bank of England and European Central Bank hold their monthly monetary policy meetings on Thursday. There is a Group of 20 nations meeting this week. The U.S. congress returns from its summer recess in mid-September and will immediately have to deal with pressing budget matters. There is an FOMC meeting in September, at which time many believe the U.S. Fed will decided to change its monetary policy. And, it’s likely that President Obama early this fall will name a new Federal Reserve chairman.
Raw commodity markets saw some good news Monday when upbeat Chinese manufacturing data was released. Chinese officials this week said their country’s annual economic growth target of 7.5% will be met. There was also positive manufacturing data coming out of the European Union on Monday. Both European Union and China economies have seen a string of mostly better-than-expected economic reports recently.
U.S. economic data due for release Tuesday includes the U.S. manufacturing PMI, construction spending, the IDB/TIPP economic optimism index, the ISM manufacturing report on business, and the global manufacturing PMI.
The London A.M. gold fix is $1,391.25 versus the previous P.M. fixing of $1,392.25.
Technically, December gold futures bulls still have the overall near-term technical advantage. A two-month-old uptrend is still in place on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,434.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,350.00. First resistance is seen at $1,400.00 and then at Friday’s high of $1,411.50. First support is seen at $1,384.00 and then at the overnight low of $1,373.60.
December silver futures bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $26.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $23.00. First resistance is seen at the overnight high of $24.53 and then at $25.00. Next support is seen at $24.00 and then at $23.64.