Comex gold futures prices ended the U.S. day session sharply higher Tuesday on fresh safe-haven investment demand. Investor risk appetite retreated Tuesday in the wake of some fresh, anemic gross domestic product figures coming out of the European Union, and on an uninspired reaction to the results of a meeting between French and German leaders regarding the EU debt crisis. December gold last traded up $26.30 at $1,784.50 an ounce. Spot gold last traded up $15.60 an ounce at $1,782.50. December Comex silver last traded up $0.518 at $39.855 an ounce.
The market place once again shuddered Tuesday following the release of some weaker-than-expected GDP data out of Germany and the European Union, overall. The U.S. stock indexes were under selling pressure Tuesday, following the EU economic news. The market place reacted little to the results of the meeting Tuesday between French President Nicolas Sarkozy and German Chancellor Angela Merkel, who discussed what to do about the European Union debt crisis. Traders have heard rhetoric from leaders before, and now want to see actual results. The EU debt saga drags on with no end in sight. That fact is a major underlying bullish factor for the gold market.
Importantly, the entire market place continues to watch the U.S. stock market and its daily movements. The daily price moves in the U.S. stock indexes continue to be the gauge for measuring investor risk appetite in the market place.
Crude oil prices traded weaker Tuesday, pressured by the weak EU GDP data. However, recent price action hints the crude oil market has put in a near-term bottom. The crude oil market will continue to be a major “outside market” force for the precious metals.
The U.S. dollar index traded slightly higher in choppy trading Tuesday, on some short covering and amid the EU debt crisis and weak EU economic data. Given the very serious EU debt situation, many are viewing the greenback as the lesser of evils in the currency markets, which is limiting the downside for the dollar.
The London P.M. gold fixing was $1,779.00 versus the previous P.M. fixing of $1,739.00.
Technically, December gold futures prices closed nearer the session high Tuesday as the bulls this week have regained good upside near-term technical momentum after late last week’s downside correction. Gold bulls have the strong overall near-term and longer-term technical advantage. Prices are in a six-month-old uptrend on the daily bar chart and in a 10-year-old uptrend on the monthly chart. Bulls’ next near-term upside technical objective is to produce a close above solid technical resistance at the all-time high of $1,817.60. Bears’ next near-term downside price objective is closing prices below solid technical support at the recent “reaction low” on the daily chart, at $1,725.80. First resistance is seen at Tuesday’s high of $1,789.80 and then at $1,800.00. First support is seen at Tuesday’s low of $1,763.60 and then at $1,750.00.
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