December Comex gold futures prices are solidly lower in early U.S. trading Friday, as shorter-term traders are taking some profits after the recent strong price gains. Prices are also seeing a downside technical correction after the big rally late this week. December Comex gold was last down $19.70 at $1,349.60 an ounce. Spot gold was last quoted down $15.30 at $1350.25. December Comex silver last traded down $0.747 at $22.545 an ounce.
European markets were quieter in overnight trading and China markets were closed for a holiday. India did surprise the market place with a hike in its key interest rate by 0.25% in an effort to curb inflation and support its currency, the rupee. But overall, the world market place is pausing to catch its breath after a very active 36 hours of trading following the surprise move by the U.S. Federal Reserve on Wednesday
The U.S. budget and debt ceiling issues are looming and will be hotly debated by the U.S. Congress and the Obama administration the next few weeks. This will become the brakingnews matter for the market place, and one that could be significantly bearish for most markets, as there is already talk the U.S. government could shut down for a short time.
European markets were quieter in overnight trading and China markets were closed for a holiday. India did surprise the market place with a hike in its key interest rate by 0.25% in an effort to curb inflation and support its currency, the rupee. But overall, the world market place is pausing to catch its breath after a very active 36 hours of trading following the surprise move by the U.S. Federal Reserve on Wednesday
The U.S. budget and debt ceiling issues are looming and will be hotly debated by the U.S. Congress and the Obama administration the next few weeks. This will become the brakingnews matter for the market place, and one that could be significantly bearish for most markets, as there is already talk the U.S. government could shut down for a short time.
Technically, December gold futures bears have the 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 $1,400.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at the overnight high of $1,368.40 and then at this week’s high of $1,375.40. First support is seen at Friday’s low of $1,346.20 and then at $1,336.00.
December silver futures bears have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $24.25 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at this week’s low of $21.225. First resistance is seen at $23.00 and then at Friday’s high of $23.18. Next support is seen at the overnight low of $22.455 and then at $22.25.
Source Jim Wyckoff Kitco Metals
Kitco Metals
