Gold, Silver, Oil and Copper Trading

Gold futures reversed and began a Strong rally Wednesday, tapping fresh 6-wk high after the US Federal Reserve’s FOMC statement following the committee’s meeting.

Silver futures followed setting a new 6-wk high too.

The Key “outside markets” turned Bullish for precious metals a mid-day, as the US Dollar index fell and Crude Oil prices firmed.

The precious metals markets came under some selling pressure prior to the FOMC statement, reversed and rallied Strong.

Feb Gold last traded 43.60 at 1,708.60 oz

Spot Gold was last quoted + 40.40 at 1,707.80 oz

Mar Silver last traded + 1.140 at 33.21 oz.

WTI Crude Oil last traded + 0.77 at 99.78

The FOMC statement suggested to the market place the US Federal Reserve will continue its very accommodative monetary policy for quite some time to come–at least through Y 2014, said.

The market views the latest FOMC statement as more accommodative than before. Such was also evidenced by the rally in the US Treasury markets and the weakening of the US Dollar index.

The very low interest rate environment is Bullish for Gold as it suggests other competing assets, such as bonds or stocks, will continue to have low annual returns. It also signals that the US Fed remains very concerned about the US economy’s health, which is also Bullish for Gold.

The US Dollar index was firmer Wednesday morning, but reversed and turned lower, tapping a new 4-wk low following the FOMC statement.

The “Greenback” Bulls have faded, and need to show fresh power soon to avoid heavy near-term chart damage.

Crude Oil prices were weaker Wednesday morning, but also firmed following the FOMC statement.

The Crude Oil Bulls still have the overall near-term technical advantage in here. Crude Oil and the US Dollar Index are the 2 Key “outside markets” that continue to have a daily influence on the Gold and Silver price.

There were no major, fresh developments coming out of the European Union debt crisis Wednesday. The EU debt crisis is a major Bullish factor for the Gold market.

The London P.M. Gold fixing was 1,650.00 vs the prior P.M. fixing of 1,665.50.

The Technicals

Feb Gold futures prices closed near the session high Wednesday and scored a big and Bullish “outside range day” up on the daily bar chart, whereby the high was higher and low was lower than the previous session’s trading range, with a higher close.

The Gold Bulls gained the Northside technical momentum Wednesday. Gold Bulls have the overall near-term technical advantage.

A 4-wk up-trend is in place on the daily bar chart. The Bulls’ next Northside technical breakout objective is to produce a close above Key technical resistance at the December high of 1,767.10.

Gold Bears’ next near-term Southside price objective is closing prices below chart support at 1,640.00.

1st resistance is seen at 1,720.00 and then at 1,725.00.

1st support is seen at 1,685.00 and then at 1,675.00.

Mar Silver futures prices closed near the session high Wednesday too, tapping a new 6-wk high and marked a Bullish “outside range day” on the daily bar chart.

the Silver Bulls now have the overall near-term technical advantage, and gained the Northside momentum Wednesday.

A 4 wk up-trend is in place on the daily bar chart.

The Silver Bulls’ next Northside price breakout objective is closing prices above Key technical resistance at the December high of 33.74.

The next Southside price breakout objective for the Silver Bears is closing prices below major psych support at 30.00.

1st resistance is seen at Wednesday’s high of 33.32 and then at 33.74.

1st support is seen at 32.50 and then at 32.00.

Mar NY Copper closed up 350 pts 384.25 cents Wednesday. Prices closed near the session high and tapped a 4-month high. The Key “outside markets” turned Bullish for Copper mid-day Wednesday, as Crude Oil rallied and the US Dollar index fell.

The Copper Bulls now have Strong near-term technical advantage. Prices are in a 6-wk up-trend on the daily bar chart.

The Copper Bulls’ next Northside breakout objective is pushing and closing prices above major psych resistance at 400.00 cents.

The next Southside price breakout objective for the Copper Bears is closing prices below Key technical support at last week’s low of 359.40 cents.

1st resistance is seen at Wednesday’s high of 385.05 cents and then at 387.50 cents.

1st support is seen at 382.50 cents and then at 380.00 cents.

Stay tuned…

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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Posted by Shayne Heffernan on Jan 25th, 2012and filed underLatest News, Paul Ebeling, USA.You can follow any responses to this entry through theRSS 2.0Responses are currently closed, but you can trackback from your own site.