Gold Trades Near Steady as Market Pauses

Subject: Gold Trades Near Steady as Market Pauses Sun Dec 26, 2010 11:15 pm

https://sites.google.com/site/goldelviroxfashion/gold/gold-trades-near-steady-as-market-pauses
Gold
prices are trading not far from unchanged levels Friday morning, as
modest profit-taking pressure is being offset by investor buying
interest due to a weaker U.S. dollar. Gold is pausing following recent,
more volatile, trading action. February Comex gold last traded down
$2.00 at $1,390.80 an ounce. Spot gold last traded up $2.80 at $1,390.25.The
U.S. dollar index is trading weaker Friday morning. The index is still
in a four-week-old price uptrend on the daily bar chart and technical
odds are increasing the index has put in at least a near-term low. The
greenback has benefited recently from ongoing financial woes in the
European Union. Rising U.S. Treasury bond and note yields this week
have also boosted the U.S. currency. However, Friday morning bond yields
had backed down a bit and the Euro currency was seeing a short-covering
bounce, which did put some downside pressure on the dollar index.Reports
overnight said China has again moved to tighten its monetary policy to
dampen its domestic demand for raw commodities. The Chinese central bank
reportedly raised its banks’ reserve requirement ratios. The move by
China Friday is raw-commodity-market-bearish, but is seen as less
aggressive than other potential monetary policy tightening measures.U.S.
economic data due for release Friday include import and export price
indexes, the University of Michigan consumer sentiment survey and the
monthly Treasury budget statement.go to
https://sites.google.com/site/goldelviroxfashion/gold/gold-trades-near-steady-as-market-pausesThe London A.M. gold fixing was $1,390.00 versus the previous P.M. fixing of $1,391.25.Technically,
February Comex gold futures this week have seen a significantly
near-term bearish "key reversal" down confirmed on the daily bar chart,
which is one early clue that a near-term market top is in place. The
market is now pausing after the sell off earlier this week. This pause
is not bullish and suggests there could be another leg down in gold
prices early next week. However, solid price gains by the close on
Friday would suggest this week’s sell off is just another decent
downside price correction in an overall uptrend that remains firmly in
place.Gold market bulls still have
the overall near-term and longer-term technical advantage. A
four-month-old uptrend is still in place on the daily bar chart. Bulls'
next near-term upside technical objective is to produce a close above
strong technical resistance at the all-time high of $1,432.50. Bears'
next near-term downside price objective is closing prices below solid
technical support at this week’s low of $1,372.10. First resistance is
seen at the overnight high of $1,393.00 and then at $1,400.00. Support is seen at the overnight low of $1,385.30 and then at $1,380.00.March
silver futures last traded down 3.7 cents at $28.78 an ounce Friday
morning. Mild profit taking is seen after prices hit a fresh contract
and 30-year high of $30.75 on Tuesday. The silver market is also
pausing, and this pause is not bullish. The weaker U.S. dollar is
limiting selling interest in silver Friday morning. The silver bulls
still have the overall near-term and longer-term technical advantage.Silver
prices are still 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 $27.00. Bulls' next upside price objective is
producing a close above solid technical resistance at this week’s high
of $30.75 an ounce. First resistance is seen at the overnight high of $29.03 and then at $29.29. Next support is seen at the overnight low of $28.63 and then at $28.50.go to
https://sites.google.com/site/goldelviroxfashion/gold/gold-trades-near-steady-as-market-pausesby

» Gold Trades Near Steady as Market Pauses
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