Morning Gold Fix – November 22, 2010

FMX | Connect – www.fmxconnect.com - (Reported 11/22/2010)

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 $1352.30 per 100 troy ounces on Friday, a net loss of $.70 for the day.

December gold was up $0.8 to $1353.1 per 100 troy ounces as of 8:10 AM EST this morning. The December U.S. dollar index was down 0.061 to $78.655. January platinum was down $14.4 to $1656.7 per 50 troy ounces. December silver was up 10.1 cents to $27.280. 

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GRI Daily Technical Overview

DEC GOLD

The market remains in a peaking turnover and targets selloffs to test recent congestion lows. A drop through 133010 projects a retracement to 1323*-131560. A close under 1323* alerts for a larger unfolding bear selloff. We may see corrective consolidation trade creep near 1364-1369, stalled corrections below 138790* by mid week should keep trend forces biased to the downside, setting up for a downturn. A close over 138790* is needed to rekindle bull forces.

DEC SILVER 

The market remains in a topping formation, but near term secondary rallies are trying to push back to test 27675*. A close over 27675* or pop over 28175 confirms a bull upturn for secondary drives that challenge the last swing high. A rejection from 27675* will likely lead to a slide back under 2600-, but look for a close under 25905* to rekindle bear trend forces for a drop against 2495.

DEC COPPER 

The market remains in a bear down trend with potential to weekly support at 35375. last week’s rebounds alert for a near term turn into corrections and we should be ready for additional sideways higher congestion the first half of the week. Only a close over 39015* marks a full bull turnaround to again drive rallies against monthly resistance over 400+. A close under 37080* renews bear forces.


In the News

Bloomberg (Reported 11/22/2010)

“Gold climbed in London as the dollar weakened against the euro on optimism a deal to rescue Ireland’s banks may curb a spread of the debt crisis.

The euro gained for a fourth day against the dollar after European Union finance ministers said the deal will create a capital fund for Ireland’s lenders. Gold, which reached a record $1,424.60 an ounce on Nov. 9, usually moves inversely to the greenback. Bullion fell 1.2 percent last week as moves by China to fight inflation and slow growth eroded demand for precious metals and raw materials.”  Gold Climbs, Rallying From Weekly Loss as Slumping Dollar Increases Demand.


Reuters (Reported 11/18/2010)

“Gold pared gains on Monday in line with a decline in the euro, which earlier had benefited from Ireland's rescue deal, as euphoria over the second euro zone bailout proved short-lived.

European Union partners voiced relief after Ireland agreed in principle on a three-year bailout package with the EU and the IMF to shore up its banking and budget crisis, which initially boosted the euro and European equities.” PRECIOUS-Gold pares gains as euro relief-rally fades.


NS Futures (Reported 11/22/2010)

“Apparently the gold trade sees the Irish debt deal overnight as a positive and that would suggest that gold traders are generally more interested in growth and inflation, as opposed to flight to quality and anxiety. The other explanation for this morning’s action is that gold remains heavily focused on the direction of the Euro and the Dollar.

While equity markets in Asia were mixed, stock markets in Europe are generally higher this morning.  US stock indices are stronger during the early Monday trade.  The Dollar is lower against the major currencies during overnight trading.”  Daily Metals Commentary. 


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