Gold Weaker On Profit Taking, Bearish Outside Markets; FOMC On Deck

www.cfb.ae

Gold prices ended the U.S. day session moderately lower Tuesday. A lack of fresh, bullish fundamental news and a looming FOMC statement kept buyers on the sidelines. Some profit taking from recent gains was also featured Tuesday. The key “outside markets” were in a bearish daily posture for the precious metals Tuesday—a firmer U.S. dollar index and weaker crude oil prices. December Comex gold was last down $6.50 at $1,345.70 an ounce. Spot gold was last quoted down $7.20 at $1346.50. December Comex silver last traded down $0.023 at $22.515 an ounce.

The market place awaits the results of the U.S. Federal Reserve’s Open Market Committee meeting, which began Tuesday morning and ends early Wednesday afternoon. There will be no press conference by Fed Chairman Bernanke after this meeting. The FOMC is expected to leave U.S. monetary policy unchanged, but as usual traders and investors will be closely parsing the FOMC statement, looking for any clues on the timing of upcoming changes in policy.

Most in the market place presently believe the Fed will not start to cut back on its monthly bond purchases until early next year—most likely the second quarter at the earliest. This scenario favors the raw commodity market bulls, including the precious metals markets. Any hints at this week’s FOMC meeting that the “tapering” of monetary policy could come sooner than the second quarter of 2014 would likely be bearish for most markets.

There was a heavy slate of U.S. economic data released Tuesday and it was a mixed bag for markets. The highlight was a weaker consumer confidence index for October, amid the U.S. government shutdown. The confidence data did give the gold market a brief lift, but it did not last long.
The U.S. dollar index was firmer Tuesday on more short covering after hitting a 10.5-month low last Friday. Meantime, Nymex crude oil futures were lower and hovering not far above the recent two-month low.

The London P.M. gold fix is $1,346.75 versus the previous P.M. fixing of $1,361.00.
Technically, December gold futures prices closed nearer the session low Tuesday. The gold market bulls and bears are still on a level near-term technical playing field. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,375.40. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at this week’s high of $1,361.80 and then at $1,375.40. First support is seen at Tuesday’s low of $1,339.80 and then at $1,300.00.

December silver futures prices closed near mid-range Tuesday amid chart consolidation. The silver bulls and bears are on a level near-term technical playing field. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $23.445 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $21.00. First resistance is seen at this week’s high of $22.715 and then at last week’s high of $21.91. Next support is seen at Tuesday’s low of $22.30 and then at $22.00.


December N.Y. copper closed up 75 points at 327.70 cents Tuesday. Prices closed near mid-range. Bulls and bears are on a level near-term technical playing field. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the October high of 335.50 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the October low of 321.50 cents. First resistance is seen at 328.55 cents and then at 330.00 cents. First support is seen at Tuesday’s low of 324.60 cents and then at last week’s low of 323.40 cents.

Contact Us:

Direct:04-3841906
Email:asad@cfb.ae
Email:info@cfb.ae

For more information please visit our website century financial brokers.

Here are some useful links that you can follow:

Here is a CFB blog that gives useful daily Gold Analysis on dailybasis.

You can also follow CFB on facebook (useful advice on posts regularly)

Here is another blog that provides regular news and information and is very useful for Forex Signals.

News Source: www.marketwatch.com