Crude oil prices traded sharply lower again Monday and hit a fresh 10-month low of $82.52 a barrel, amid the world economic slowdown worries and risk aversion. Speculators are also being brutally wrung out of the crude oil market. Crude oil has seen serious near-term chart damage inflicted recently. Crude will still be a major "outside market" force for the precious metals, and especially silver.
In other news, JP Morgan on Monday forecast spot gold prices reaching $2,500.00 an ounce by year-end.
The London P.M. gold fixing was $1,693.00 versus the previous P.M. fixing of $1,658.75.
Technically, December gold futures prices closed nearer the session high Monday. Prices produced a very rare "gap higher" trade on the daily chart Monday. Gold bulls have the strong overall near-term and longer-term technical advantage and gained more power Monday. 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 $1,750.00. Bears' next near-term downside price objective is closing prices below solid technical support at $1,673.00, which is the bottom of Monday's upside price gap on the daily bar chart. First resistance is seen at $1,725.00 and then at $1,735.00. First support is seen at $1,710.00 and then at $1,700.00. Wyckoff's Market Rating: 10.0.
Source - KITCO
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