Morning Gold Fix – November 19, 2010

FMX | Connect – www.fmxconnect.com - (Reported 11/19/2010)

The following is a summary of yesterday’s US gold activity and a recap of Asia & European markets overnight. It includes our proprietary options analytics and news stories from industry professionals.

Summary

December Gold settled at $1353 per 100 troy ounces on Thursday, a net gain of $16.10 for the day.

December gold was down $6.4 to $1346.6 per 100 troy ounces as of 8:25 AM EST this morning. The December U.S. dollar index was down 0.119 to $78.610. January platinum was down $10.9 to $1653 per 50 troy ounces. December silver was down 22.4 cents to $26.610. 

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GRI Daily Technical Overview

DEC GOLD (133440)

Resist: 135370, 1364-1369, 138790*

ST Trend: Sdwys/Down

Supprt: 132890, 1323*-131560, 1298

Obj: 1323

TRP: 1387.90

Comment: The market showing a peaking turnover and now targets selloffs to test recent congestion lows and retracement support at 1323*-131560. A close under 1323* alerts for a larger unfolding bear selloff. We may see a bounce off 1323*- and consolidation trade around Monday’s settlement, However, suspect
recovery action will stall below 138790* to keep trend forces biased to the downside. A close over 138790* is needed to rekindle bull forces.

DEC SILVER (25505)

Resist: 26115, 2657-26645*

ST Trend: Down

Supprt: 2495-2475, 2400+/-

Obj: 2495 TRP: 27.675

Comment: The market is showing topping trade and should try to extend retracement selloffs down against the gap level at 2475-2443. A close under 2475 signals a larger short term declines along 2400+/-. If trade is reluctant to extend under 2495-2475, we may see a bounce to correct and consolidate selloffs of recent
days, likely forming a bear flag. Tight congestion under 26645*- should setup for selloffs. A close over 26645* is needed to start secondary rallies.

DEC COPPER (37245)

Resist: 37890*, 38405-38570

ST Trend: Down

Supprt: 366, 36115-36065, 35375*

Obj: 35375

TRP: 390.15

Comment: The current break signals a topping downturn and opens up the formation to a bear wave to retracement support at 35375. Bear forces may yet try to generate follow through selling and a close under the 36065 will release a wash to 35375. Holding yesterday’s spike today-Friday could trigger flagging corrections. A close over 37890* targets a climb to 385. Only a close over 39015* marks a bull turn.



In the News

Bloomberg (Reported 11/19/2010)

“Gold may rise as concern about Ireland’s debt woes spurs demand for a protection of wealth, a survey found.

Twelve of 19 traders, investors and analysts surveyed by Bloomberg, or 63 percent, said the metal will gain next week. Four predicted lower prices and three were neutral. Gold futures for December delivery were down 1.1 percent for this week at $1,351 an ounce at 11 a.m. yesterday on the Comex in New York. Futures reached a record $1,424.30 on Nov. 9.”  Gold May Climb Next Week as Irish Debt Concern Spurs Demand, Survey Shows.


Reuters (Reported 11/18/2010)

“Gold prices steadied on Friday, holding onto gains from the previous session, as a cure is seen imminent for Ireland's debt crisis, which helped boost the euro.

Ireland insisted on Thursday its low rate of corporation tax was "non-negotiable" as it discusses an aid package worth tens of billions of euros from European partners and the IMF for its shattered banks.” PRECIOUS-Gold holds gains as Ireland worry eases.


NS Futures (Reported 11/19/2010)

“Apparently the gold market likes to see upbeat or favorable macro economic conditions, as gold prices have mounted a fairly impressive pulse upmove in the early Thursday morning action.  The gold market is probably cheered by the fact that the Euro has forged a strong recovery bounce, as another meltdown in the Euro zone was seen as a development that could have ultimately derailed inflation.

With equity markets in Asia and Europe higher this morning, US stock indices are stronger during the early Thursday trade.  The Dollar is weaker against the major currencies during overnight trading.”  Daily Metals Commentary. 


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