Gold Ends Narrowly Mixed, as Bears Keeping Tight Grip on selling...

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Gold prices ended the U.S. day session mixed and not far from unchanged Tuesday and did hit another five-month low. Some mild short covering and a corrective bounce were offset by fresh chart-based selling as the session progressed. Traders and investors are awaiting the next data points to help drive market prices. February gold was last down $1.30 at $1,220.50 an ounce. Spot gold was last quoted up $2.00 at $1221.75. March Comex silver last traded down $0.194 at $19.09 an ounce.

Losses in the gold and silver markets were somewhat limited by the key outside markets being in a bullish daily posture for the precious metals—a lower U.S. dollar index and solidly higher crude oil prices.

This is a big week for economic data, highlighted by the European Central Bank’s monthly monetary policy meeting on Thursday and the U.S. jobs report on Friday. However, there are other key reports out this week, including Wednesday’s U.S. Federal Reserve’s beige book and Thursday’s U.S. GDP report. Traders and investors for many weeks have been obsessing about the precise timing of when the Fed will alter its monetary policy and back off from its monthly bond-buying program—called quantitative easing. Monday’s batch of generally upbeat U.S. data fell into the camp that reckons the Fed will act to taper sooner rather than later. This week’s data will provide at least some new insight on the timing of the Fed’s next move. Meantime, the ECB recently eased its monetary policy and the market place is wondering what central bank’s next move will be.

In overnight news, the OECD reported inflation in its 34 member economies fell for a third straight month in October—to 1.3% from 1.5% in September, on an annualized basis. The EU statistics agency said Tuesday the EU’s producer prices fell at the fastest rate in four years in October, at down 0.5% from September and down 1.4% from the previous year. This news is likely to keep the ECB in a very easy money policy mode, as the central bank does not want deflation to set in.

The London P.M. gold fix is $1,217.25 versus the previous P.M. fixing of $1,229.50.
Technically, February gold futures prices closed near mid-range and hit another five-month low Tuesday. Gold prices are in a five-week-old downtrend on the daily bar chart. The gold market bears have the solid 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 last week’s high of $1,258.20. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,200.00. First resistance is seen at Tuesday’s high of $1,225.80 and then at $1,234.10. First support is seen at Tuesday’s low of $1,214.60 and then at $1,200.00.

March silver futures prices closed nearer the session low and hit another fresh five-month low Tuesday. Silver bears have the solid overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $20.335 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of $18.60. First resistance is seen at Tuesday’s high of $19.335 and then at $19.62. Next support is seen at Tuesday’s low of $18.975 and then at $18.60.


March N.Y. copper closed down 200 points at 316.25 cents Tuesday. Prices closed nearer the session low. 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 326.85 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of 313.50 cents. First resistance is seen at Tuesday’s high of 318.25 cents and then at 320.00 cents. First support is seen at Tuesday’s low of 315.80 cents and then at 313.50 cents.

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