Gold Probes Below $1,800 Should Uncover 'Buying Opportunities'

Any forays by gold below $1,800 an ounce may well prompt renewed buying, says Credit Agricole CIB. In a weekly report on positioning by speculators, senior metals analyst Robin Bhar notes that investors have been seeking refuge from global currency instability, volatile stock markets and an uncertain economic outlook. “Also, they are worried about monetary reflation and (the) sovereign-debt crisis,” he says. “Europe’s bank balance sheets are becoming increasingly impaired, which is bullish for gold. In the short term, corrective probes below USD1,800/oz should uncover good buying opportunities.”

Gold Rises As Buyers Add To Positions When Recent Selling Abates

Gold posted a “relief rally” as investors continued to eye eurozone debt problems and added to positions after the recent selling abated, says George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures. Overall open interest declined for Monday, suggesting some liquidation as the market fell. At the time, investors were said to be selling gold to raise cash to cover losses in other markets. However, the open-interest data also shows longer-term participants entering the market, Gero adds. CME Group data shows that while overall open interest fell Monday, it rose for the April and June 2012 contracts. As of 1:40 p.m. EDT Tuesday, Comex December gold was $23.70 higher at $1,837 an ounce.

Sources : http://www.kitco.com/reports/KitcoNewsMarketNuggets20110913.html

Barrick to invest $550 mln in Peru by 2013

AREQUIPA, Peru Sept 13 (Reuters) - Barrick Gold (ABX.TO: Quote), the world's largest gold producer, plans to invest $550 million in Peru by 2013, said Darrell Wagner, general manager for Barrick Misquichilca, Barrick's Peruvian subsidiary on Tuesday.

Sources : http://af.reuters.com/article/metalsNews/idAFS1E78C16T20110913

Comex Gold Ends Higher on Bargain and Save-Haven Buying, Positive Outside Markets

Comex December gold futures are ended the U.S. day session solidly higher and near the daily high on safe-haven and bargain-hunting buying interest following selling pressure Monday. A lower U.S. dollar index and higher crude oil prices Tuesday also supported buying interest in the precious metals. December gold last traded up $29.60 at $1,843.00 an ounce. Spot gold last traded up $25.80 an ounce at $1,840.75. December Comex silver last traded up $1.128 at $41.345 an ounce.

Like a broken record, value hunting traders and investors yet again stepped in to "buy the dip" in gold prices Tuesday, following solid losses posted on Monday. It can be argued this phenomenon has occurred for the past 10 years, on a longer-term basis, but it has become more pronounced in recent months.

The U.S. dollar index traded lower Tuesday, on a corrective pullback after hitting a fresh six-month high Monday. This also supported fresh buying interest in the precious metals. However, the greenback bulls still have some upside near-term technical momentum to suggest a price uptrend can be sustained. If the U.S. dollar index continues to trade sideways to higher, that would be a bearish underlying factor for the precious metals markets.

Crude oil futures prices traded solidly higher Tuesday, which was also bullish for gold and silver. Crude oil prices hit a fresh five-week high Tuesday, which did give the crude bulls some fresh upside near-term technical momentum. Crude oil will remain an important "outside market" that will influence the precious metals markets.

The European Union sovereign debt crisis was still in the headlines Tuesday. Worries about default on debt payments by Greece and rising Italian bond yields are the EU debt crisis worries of the moment on this day. There are unconfirmed reports that China is thinking about stepping in to buy some Italian debt, and that Germany and France may soon make a joint statement regarding Greece's debt. But still, there has been no major breakthrough regarding effectively dealing with Greece's debt. The Euro currency has been hammered and the U.S. dollar index has rallied recently as investors fleed European Union assets. The EU debt crisis is still a major underlying bullish factor for gold and is prompting safe-haven demand for the metal.

Here's an important element for all gold traders to monitor closely: If the U.S. stock indexes drop below their August price lows, that would be extremely bearish for U.S. stocks and very likely significantly bullish for safe-haven gold.

The London P.M. gold fixing was $1,820.00 versus the previous P.M. fixing of $1,834.00.

Technically, December gold futures prices closed near the session high Monday. The gold market bulls have the solid overall technical advantage. Bulls' next upside technical objective is to produce a close above solid technical resistance at the all-time high of $1,923.70. Bears' next near-term downside price objective is closing prices below solid technical support at last week's low of $1,793.80. First resistance is seen at $1,850.00 and then at this week's high of 1,865.20. First support is seen at $1,825.00 and then at $1,800.00. Wyckoff's Market Rating: 8.0.

December silver futures prices closed near the session high Monday. Silver prices were supported by bullish "outside markets" today that included a weaker U.S. dollar index and higher crude oil prices. The silver bulls still have the overall near-term technical advantage, amid choppy trading. Prices are in a choppy, 10-week-old uptrend on the daily bar chart. Bulls' next upside price objective is producing a close above strong technical resistance at the September high of $43.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at this week's low of $39.75. First resistance is seen at $41.50 and then at $42.00. Next support is seen at $41.00 and then at $40.50. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed up 145 points 398.00 cents Tuesday. Prices closed near mid-range and saw short covering in a bear market. Copper prices were supported by bullish "outside markets" today that included a weaker U.S. dollar index and higher crude oil prices. Copper bears have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 415.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of 384.20 cents. First resistance is seen at 400.00 cents and then at Tuesday's high of 402.45 cents. First support is seen at today's low of 395.50 cents and then at this week's low of 390.50 cents. Wyckoff's Market Rating: 4.5.

Sources: http://www.kitco.com/reports/KitcoNews20110913JW_pm.html

Comex Gold Lower As Porfolio Managers Sell To Raise Cash; Stops Triggered

Some sell stops have already been triggered in Comex gold, and more could be hit if the market were to fall through the $1,825- and $1,800-per-ounce areas, says George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures. If so, this conceivably could pull gold down as far as $1,750. Gero attributes the selling pressure largely to efforts by money managers to raise extra cash because of losses in their portfolios. “The inability again of the G-7 (Group of Seven nations) to come up with anything is disturbing some of the markets,” especially equities, Gero says. As of 9:19 a.m. EDT, Comex December gold was $19.30, or 1%, lower at $1,840.20 an ounce.

Sources : http://www.kitco.com/reports/KitcoNewsMarketNuggets20110912.html

Comex Gold Lower amid Stronger U.S. Dollar Index

Comex December gold futures are trading lower Monday, on some profit-taking pressure from recent gains and amid a stronger U.S. dollar index. However, losses in gold are being limited by the festering European Union debt crisis that is back on the front burner of the market place Monday morning. December gold last traded down $14.30 at $1,845.10 an ounce. Spot gold last traded down $18.00 an ounce at $1,841.75. December Comex silver last traded down $0.667 at $40.95 an ounce.

The European Union sovereign debt crisis is back in the headlines to start the trading week. There has been no major breakthrough regarding dealing with what is now the EU debt-strapped nation in the spotlight: Greece. There is growing belief Greece is a sinking ship within the EU that cannot be righted. Italian bond yields are also rising, which is another indication of lack of confidence in the EU financial system. The Euro currency has plunged and the U.S. dollar index has rallied as investors flee European Union assets. While gold is seeing some selling pressure Monday, the EU debt crisis is still a major underlying bullish factor for gold.

The U.S. dollar index is trading higher again Monday and hit a fresh six-month high overnight. The greenback bulls have gained good upside near-term technical momentum recently, to now suggest a price uptrend can be sustained. If the U.S. dollar index continues to trade sideways to higher, that would be a bearish underlying factor for the precious metals markets.

Crude oil futures prices are trading weaker Monday, which is also somewhat bearish for gold and silver. Crude oil's recent price action hints prices will trade in a choppy range between $80 and $90 a barrel for the near term. Crude oil will remain an important "outside market" that will influence the precious metals markets.

There were reports overnight coming from some brokers that part of gold's weakness Monday is due to margin calls in other weak markets pulling some money out of the gold market.

If recent history repeats itself, bargain hunters will once again step in to "buy the dip" on perceived bargain hunting in gold.

Here's an important element for all gold traders to monitor closely: If the U.S. stock indexes drop below their August price lows, that would be extremely bearish for U.S. stocks and very likely significantly bullish for safe-haven gold. The U.S. stock indexes are starting off the week on very shaky ground as prices are now hovering not that far above the August lows.

There is no U.S. economic data due for release Monday.

The London A.M. gold fixing was $1,843.00 versus the previous P.M. fixing of $1,851.00.

Technically, December gold futures bulls still have the solid overall technical advantage. Bulls' next upside technical objective is to produce a close above solid technical resistance at the all-time high of $1,923.70. Bears' next near-term downside price objective is closing prices below solid technical support at last week's low of $1,793.80. First resistance is seen at $1,850.00 and then at the overnight high of 1,865.20. First support is seen at the overnight low of $1,828.80 and then at $1,816.20.

December silver futures bulls still have the overall near-term technical advantage. Prices are still in a choppy, nine-week-old uptrend on the daily bar chart. Bulls' next upside price objective is producing a close above strong technical resistance at the September high of $43.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $40.00. First resistance is seen at the overnight high of $41.60 and then at $42.00. Next support is seen at the overnight low of $40.83 and then at last week's low of $40.385.

Sources : http://www.kitco.com/reports/KitcoNews20110912JW_am.html