Gold Up as Near-Term Technicals Favor the Bulls

By Paul Ploumis (ScrapMonster Author)

October 21, 2015 05:28:39 AM

Gold prices ended higher marginally on US day session Thursday.Gold Up as Near-Term Technicals Favor the Bulls

(Kitco News) - Gold prices ended the U.S. day session modestly higher Tuesday, as traders bought the recent dip in prices. The near-term chart postures for gold and silver favor the bulls and continue to invite fresh buying interest in both metals. December Comex gold was last up $4.30 at $1,177.10 an ounce. December Comex silver was last up $0.044 at $15.89 an ounce.

A weaker U.S. dollar index on this day also favored the precious metals bulls. However, an upbeat U.S. economic report did bring the greenback well up from its daily low. U.S. housing starts in September rose 6.5% from August, versus expectations for a rise of 1.8%, it was reported Tuesday morning. The data did briefly pressure the gold market just after it was released.

The OPEC oil cartel and some non-OPEC oil-producing countries like Russia and Mexico meet in Vienna, Austria, Wednesday to discuss world crude oil production levels. Most market watchers do not expect the cartel to reduce its collective oil production, which would likely see it then lose market share. Instead, OPEC will likely remain on its path of pumping oil at its present levels in order to drive out of business the producers who need higher-priced oil to be profitable. If the raw commodity sector is going to break out of its “bust” cycle, crude oil prices will have to lead the way. Nymex crude oil prices were weaker Tuesday, and are back in the middle of a sideways trading range.

In overnight news, German producer prices were down 0.4% in September and down 2.1% year-on-year. Both figures were down more than expected. The data falls into the camp of the Euro zone monetary policy doves, who want to see the European Central Bank implement more monetary policy stimulus measures, in part to ward off dreaded price deflation.

Courtesy: Kitco News