Kitco Metals Roundup: Comex Gold Powers to 6-Mo. High on QE3 from U.S. Federal Reserve

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P.m. Kitco Metals Roundup: Comex Gold Powers to 6-Mo. High on QE3 from U.S. Federal Reserve
Thursday September 13, 2012 1:44 PM

The gold and silver surged sharply Markets Higher Thursday at midday, in the aftermath of the FOMC announcement That the Federal Reserve has embarked upon more quantitative easing of U.S. Monetary Policy - nicknamed QE3. December gold powered to a fresh six-month high of $ 1,775.00 an ounce as of this writing. About 15 minutes BEFORE the FOMC announcement did gold back off a bit nervous missing on profit taking and position evening. But thereafter the FOMC announcement PRICES surged sharply Higher gold. Gold and Silver Markets Lingo got a fresh shot of technical power Thursday. December gold last traded up $ 37.40 at $ 1,771.10 an ounce. Spot gold was last quoted up $ 37.50 an ounce at $ 1,769.50. December Comex silver last traded up $ 34.60 at $ 1,298 an ounce.

The FOMC statement was recruitment accommodative, even surprised Selatan Those who were already expecting QE3 to be unwrap Thursday. The Fed will now pump $ 40 billion a month into the U.S. nal Berhad system and will keep interest rates very low until at least 2015. That news Sunk the U.S. dollar index to a fresh four-month low and was bullish for the U.S. stock market. Fed Chairman Ben Bernanke will now hold a press conference early Thursday afternoon. The market place had a Slight bias That the Fed would announce QE3, sort of fresh or missing Monetary stimulus package, on Thursday.

In other overnight news, the Italian government had a Successful long-term bond offerings, with Most agreeing the debt sale went well due to the European Union's recent proclamations to support Governments' debt sales by Having the European Central Bank sop up Any excess debt. Also, Greece's unemployment rate rose to a record high of 23.6% in in the second quarter. The IMF said Thursday That also rates Greece would need a third round of bailout assistance nal Berhad.

The U.S. dollar index traded lower Thursday and extended its losses to hit another fresh four-month low after it the FOMC statement. The greenback bears not have the solid near-term technical advantage as a seven-week-old downtrend line is in place on the daily bar chart. Meantime, crude oil were PRICES Higher Thursday and hit a fresh four-month high on the QE3 news. Oil bulls not have the overall near-term technical advantage. These two key "outside Markets" were in a bullish posture for the precious metals Thursday and will Continue to have a daily Influence on precious metals PRICES.

The London p.m. gold fixing is $ 1,730.50 versus the previous p.m. fixing of $ 1,737.00.

Technically, December gold futures PRICES closed near the session high Thursday, hit another fresh six-month high and scored a big and bullish "outside day" up on the daily bar chart, whereby the high was A higher and low was lower than the previous session's trading range, with a Higher close. Bulls gained solid upside technical power Thursday to now suggest a challenge of the 2012 high of $ 1,800.90, or above. The gold market bulls not have the solid overall near-term technical advantage. The gold bulls' next upside price breakout objective is to Produce a close above solid technical resistance at the 2012 high of $ 1,800.90. Bears' next near-term downside price objective is closing PRICES below solid technical support at Thursday's low of $ 1,720.00. First resistance is seen at $ 1,775.00 and $ 1,785.00 Then at. First support is seen at $ 1,750.00 and $ 1,745.40 Then at. Wyckoff's Market Rating: 8.5

December silver futures closed near the session PRICES high Thursday and hit another fresh six-month high. Thursday's strong upside price action negated a Potentially bearish "key reversal" down on the daily chart That formed on Wednesday. Silver bulls are in strong near-term technical command and gained fresh upside momentum Thursday. Prices are in a six-week-old uptrend on the daily bar chart. Bulls' next upside price breakout objective is closing PRICES above solid technical resistance at $ 36.00 an ounce. The next downside price breakout objective for the bears is closing PRICES below solid technical support at this week's low of $ 32.51. First resistance is seen at $ 35.00 and Then at $ 35.50. Next support is seen at $ 34.50 and Then at $ 34.00. Wyckoff's Market Rating: 8.5.

December N.Y. copper closed up 510 points at 374.40 cents Thursday. Prices closed near the session high and hit another fresh four-month high. Prices also rates scored a bullish "outside day" up on the daily bar chart Thursday. The key "outside Markets" were bullish for copper Thursday, as the U.S. dollar index was lower and crude oil were Higher PRICES. Copper bulls not have the near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Copper bulls' next upside breakout objective is closing PRICES Pushing and above solid technical resistance at 380.00 cents. The next downside price breakout objective for the bears is closing PRICES below solid technical support at 356.25 cents. First resistance is seen at Thursday's high of 374.65 cents at 377.50 cents and Then. First support is seen at 370.00 cents and Then at Thursday's low of 365.85 cents. Wyckoff's Market Rating: 7.0.

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By Jim Wyckoff, Contributing to Kitco News; jwyckoff@kitco.com