Comex gold futures prices Monday ended higher, hit a fresh four-week high and are now within striking distance of the all-time record high of $1,426.00 an ounce, basis February futures. Reports said spot gold priced in the Euro currency did hit a new record high overnight. The precious metals are seeing fresh demand following bullish comments made from Federal Reserve Chairman Ben Bernanke and by heightened uncertainty regarding the health of the Euro currency. February Comex gold last traded up $9.90 at $1,416.10 an ounce. Spot gold last traded up $0.90 at $1,416.00.
Precious metals prices got a boost overnight following Bernanke's comments made on the Sunday evening U.S. television program "60 Minutes." The Fed chairman said it's very possible the Fed could expand its latest economic stimulus package if conditions warrant--ostensibly printing more U.S. dollars and further raising the specter of inflation. He also said he is "100% sure" the Fed is taking the right steps to fix the U.S. economy. However, many felt the Fed chief's appearance on the TV program did not instill investor confidence in the Fed's recent actions.
The U.S. dollar index traded higher Monday as traders shrugged off the dollar-bearish comments from Bernanke and instead focused on the financial woes of the European Union. The EU's sovereign debt problems saw the heat turned up over the weekend by the European press, which highlighted the present plight of the European Union and the Euro. On Friday, former Fed Chairman Alan Greenspan implied the Euro currency could not survive.
The London P.M. gold fixing was $1,415.25 versus the previous P.M. fixing of $1,403.50 an ounce.
Technically, February Comex gold futures closed near mid-range Monday, hit a fresh four-week high and are within easy striking distance of the all-time high scored last month. The gold market bulls have the solid near-term technical advantage. There are no early technical clues to suggest a market top is close at hand. A four-month-old uptrend is in place on the daily bar chart.
Gold bulls' next near-term upside technical objective is to produce a close above strong technical resistance at the all-time record high of $1,426.00 in February futures. Bears' next near-term downside price objective is closing prices below solid technical support at $1,383.00. First resistance is seen at Monday's high of $1,422.40 and then at $1,426.00. Support is seen at Monday's low of $1,409.80 and then at $1,400.00. Wyckoff's Market Rating: 8.5.
March Comex silver futures closed up 55.9 cents at $29.84 an ounce Monday. Prices closed near mid-range and hit a fresh contract and 30-year high. Gold was supported by stronger gold prices Monday and ignored bearish "outside markets" that included a stronger U.S. dollar and weaker crude oil and U.S. stock index futures prices.
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: 9.0.
March N.Y. copper closed up 110 points at 401.00 cents Monday. Prices closed nearer the session high and hit another fresh three-week high. The key "outside markets" were in a bearish posture for copper Monday, as the U.S. dollar index was higher, while crude oil and the U.S. stock indexes were lower. Yet, copper rallied anyway, which is bullish for the red metal. Prices also pushed above major psychological resistance at $4.00, which is also bullish.
Copper bulls have fresh upside technical momentum. Bulls' next upside objective is pushing and closing prices above solid technical resistance at the November high of 408.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at Monday's high of 402.90 and then at 405.00 cents. First support is seen at Monday's low of 397.45 cents and then at 395.00 cents. Wyckoff's Market Rating: 8.0.
By Jim Wyckoff of Kitco News; jwyckoff@kitco.com