March 24, 2014 2:04 PM
Original Source: Kitco News
By: Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

P.M. Kitco Roundup: Gold Ends Sharply Lower, Hits 4-Week Low, on More Chart-Based Selling

Gold prices ended the U.S. day session sharply lower and fell to a four-week low Monday. More technically related selling pressure hit the market, including sell stop orders being triggered, amid a lack of fresh, bullish fundamental news for the precious metal. Serious near-term chart damage has been inflicted on the gold market recently and the bears now have the near-term technical advantage. April gold was last down $24.50 at $1,311.50 an ounce. Spot gold was last quoted down $22.40 at $1,312.75. May Comex silver last traded down $0.255 at $20.055 an ounce.

The economic data point of the day Monday saw the China HSBC preliminary purchasing managers' index drop to an eight-month low of 48.1 in March from 48.5 in February. This continues a trend of weaker-than-expected economic data coming out of China and raises the question: Will China move to use monetary stimulus to boost its economy? The spate of weaker data from China has been a bearish underlying factor for many raw commodity markets, including the precious metals.

The U.S. flash PMI index came in Monday at 55.5 in March versus 57.1 in February. That data had little impact on the market place. Meantime, the European Union's March manufacturing flash PMI came in at 53.2 versus expectations of a 53.3 reading and a February figure of 53.3. A PMI reading below 50.0 suggests contraction and above 50.0 suggests growth.

European and U.S. stock markets were pressured in part on the China PMI news. However, Asian stock markets appeared little affected on the weaker China data and showed gains. European stock markets are still unnerved by Russia's annexation of the Crimea region of Ukraine last week.

The Ukraine-Russia conflict is still on the radar screen of the market place. Russian troops over-ran Ukrainian military bases during the weekend. President Obama is in Europe and China this week drumming up international support for more sanctions on Russia. A Group of Seven meeting is scheduled to take place Monday on the Russia-Ukraine matter. Any significant escalation of tensions between Ukraine and Russia would quickly put keener risk-aversion into the market place and would likely benefit safe-haven gold.

The London P.M. gold fixing was $1,310.75 versus the previous P.M. fixing of $1,336.00.

Technically, April gold futures prices closed nearer the session low and hit a fresh four-week low Monday. Serious near-term chart damage has been inflicted recently. The bears have now gained the near-term technical advantage. The gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at $1,320.00 and then at $1,325.00. First support is seen at Monday's low of $1,308.50 and then at $1,300.00. Wyckoff's Market Rating: 4.0

May silver futures prices closed nearer the session low Monday and hit a fresh six-week low. Prices are in a four-week-old downtrend on the daily bar chart. The bears have the near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $21.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.00. First resistance is seen at Monday's high of $20.315 and then at $20.63. Next support is seen at Monday's low of $19.97 and then at $19.75. Wyckoff's Market Rating: 3.0.

May N.Y. copper closed down 40 points at 294.65 cents Monday. Prices closed near mid-range today. Prices are in a three-month-old downtrend on the daily bar chart. Bears have the solid near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 307.75 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the March low of 287.70 cents. First resistance is seen at Monday's high of 296.90 cents and then at 300.00 cents. First support is seen at Monday's low of 293.10 cents and then at 290.00 cents. Wyckoff's Market Rating: 1.5.

These articles are provided for informational purposes only and were obtained from publicity available sources on the Internet. These articles do not constitute financial advise or trading recommendations by Global Asset Management ("Global"). Global neither warrants the accuracy or completeness of the information contained in these articles, undertakes to update them, nor is it responsible for any omission or error contained in these articles. Viewers are encouraged to conduct, and should only rely on, their own independent research.
The purchase or sale of precious metals involves substantial risk and volatility. If you are contemplating purchasing and/or selling precious metals, you should consult with an independent financial advisor to learn about the inherent risks. Global does not render, and nothing in this website should be construed as, financial advise, a trading recommendations or a solicitation for the purchase or sale of precious metals.
 
 

Daily Chart : Gold

Daily Chart : Silver

Daily Chart : Platinum

Daily Chart : Palladium

 
 
 

Copyright © 1996-2010 Global Asset Management. All rights reserved.

2425 Hollywood Blvd. Suite 100. Hollywood, Florida 33020 :: info@globalam.net

phone: 954.921.1021 :: fax: 954.921.1536 :: toll free: 1.888.421.1021