Comex gold futures prices ended modestly lower Tuesday after hitting a fresh all-time record high of $1,432.50, basis February futures. Traders rang the cash register and took some profits in gold when the U.S. dollar index rebounded from its early lows. Still, the overall technical and fundamental posture of the gold market remains fully bullish. February Comex gold last traded down $4.80 at $1,411.30 an ounce. Spot gold last traded down $13.20 at $1,411.00.
The U.S. dollar index rebounded from lower price levels as the session wore on Tuesday. The index was supported by higher U.S. Treasury yields due to agreement being reached between the Obama administration and Republicans, regarding tax cuts. The dollar index is in a four-week-old price uptrend on the daily bar chart. The greenback has also benefited recently from ongoing financial woes in the European Union. The EU's sovereign debt problems have heated up the past couple weeks, with new market chatter about another financial market contagion developing, and originating from the EU. That's still gold-market-bullish.
The London P.M. gold fixing was $1,420.00 versus the previous P.M. fixing of $1,415.25 an ounce.
Technically, February Comex gold futures on Tuesday closed nearer the session low and scored a bearish "outside day" down on the daily bar chart, whereby the high was higher and low was lower than the previous day's trading range, with a lower close. If there is strong follow-through selling pressure in gold on Wednesday, then a more significantly bearish "key reversal" down would be confirmed on the daily bar chart, which would be one early clue that a near-term market top is in place. But right now, Tuesday's price action is just mild profit-taking pressure in a strong bull market.
A four-month-old uptrend is in place on the daily bar chart. Bulls' next near-term upside technical objective is to produce a close above strong technical resistance at the all-time high of $1,432.50. Bears' next near-term downside price objective is closing prices below solid technical support at $1,383.00. First resistance is seen at $1,420.00 and then at Monday's high of $1,429.40. Support is seen at Tuesday's low of $1,403.00 and then at $1,400.00. Wyckoff's Market Rating: 8.0.
March silver futures closed up 18.5 cents at $29.92 an ounce Tuesday. Prices closed nearer the session low and did hit another fresh contract and 30-year high of $30.75. The stronger U.S. dollar and weaker crude oil futures prices did push silver down from its early highs. The silver bulls have the solid near-term technical advantage.
Silver prices are in a four-month-old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at $28.00. Bulls' next upside price objective is producing a close above solid technical resistance at $31.00 an ounce. First resistance is seen at Monday's high of $30.115 and then at $30.50. Next support is seen at Monday's low of $29.48 and then at $29.00. Wyckoff's Market Rating: 8.5.
March N.Y. copper closed up 445 points at 405.25 cents Tuesday. Prices closed near mid-range and hit a fresh contract and 2.5-year high of 413.15 cents. Prices have pushed above major psychological resistance at $4.00, which is bullish. Copper bulls have fresh upside technical momentum. Bulls' next upside objective is pushing and closing prices above solid technical resistance at 425.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 390.00 cents. First resistance is seen at 408.75 and then at 410.00 cents. First support is seen at 402.90 cents and then at 400.00 cents. Wyckoff's Market Rating: 8.5.
and this...
Silver enthusiasts, however, point to the gold-to-silver price ratio as an indication that the metal should be on a roll.
That ratio, which traditionally has hovered around 16-to-1, has soared to just less than 50-to-1, a possible clue that silver is underpriced.
And it’s true that as gold appreciates, silver becomes more relatively more attractive. But investment demand has distorted the prices of both metals to such an extent that such indicators are not to be trusted, said John Ing, president and gold analyst at Maison Placements Canada.
“Traditional measurements of gold-versus-silver ratios are thrown out the window,” Mr. Ing said.
That influence is amplified by the fact that silver is a relatively small market, said Aaron Fennell, a senior market strategist at Lind-Waldock.
In fact, silver is most often a by-product metal from other mining operations as very few companies invest primarily in silver.
“The amount of money that wants to be in the metals market far exceeds the amount of metal out there,” Mr. Fennell said.
“When you get a little bit of buying from speculative capital, it doesn’t take very long for the market to move dramatically.”
Read more: http://www.montrealgazette.com/business/fp/these+markets+silver+wins+default/3936245/story.html#ixzz17SdAxK9R
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