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-- Posted Friday, 28 February 2003 | Digg This Article
METALS: 2/28 OVERNIGHT CHANGE to 5:28 AM: GLD +2.30, SLV +3.0, PLAT +2.00 London Gold Fix $347.65 -$3.65 LME Copper Warehouse stks 820,950 ton -1725 tns Comex Gold stocks 2.263 ml Unchanged COMEX Silver stks 108.1 ml oz -6,964 oz OVERNIGHT ACTION: The gold market recovered a few dollars of yesterday's losses in Asia overnight. GOLD: The market responded to a decline in war and terrorism fears but the real question for holders of gold is "Is this a temporary easing of opinion on Iraq or a ploy by Iraq to slow the aggression of US and UK war deployment." Stock and money markets around the world took stock in Iraq's offer to destroy missiles. In addition, gold traders took stock in the US announcement of a decline in the terrorist threat. Fears that the weekend Commitment-of-Traders report will show a hefty net long position by the speculator and news that Russia and the US have agreed in a telephone conference to try to resolve the dispute over how to disarm Iraq by taking into account the "interests of the world community". While there seems to be a temporary cooling in the US stance, comments from Administrators do not seem to suggest that Bush will back down soon. In other words, the gold market is in a profit-taking stage but the bullish influences are likely to return soon. Key buying support for April gold is at 342.80 but it will take a move over 360.80 to turn the major trend back up. Assume that the market will make another test of the highs and that April gold will not close under 342.80. Given the extreme volatility possible in the next few weeks, buyers might use April puts as protection instead of stops. SILVER: The silver market is a follower but war or a stock market revival are both positive forces. Buying support for May silver is at 458 and a close over 465.70 should be enough to confirm a low. Upside objectives include 480.60 and 517. METALS TECHNICAL OUTLOOK 2/28/03 #P-METALS 2/28/03: SILVER (MAY): Could see some early pressure today given the market's negative setup with the close below the 2nd swing support. Initial support for silver is at 452.0 and below there at 449.0 with resistance likely at 461.1 and 463.0. A negative signal for trend short-term was given on a close under the 9-bar moving average. Stochastics are at mid-range, but trending higher which should reinforce a move higher if resistance levels are taken out. The next upside objective is 461.1. #REF!#REF! GOLD (APR): Support for gold today comes in near 338.68, while resistance is pegged at 358.08. A crossover down in the daily stochastics is a bearish signal. The next downside target is now at 338.68. The defensive setup, with the close under the 2nd swing support, could cause some early weakness. The close below the 9-day moving average is a negative short-term indicator for trend.
-- Posted Friday, 28 February 2003 | Digg This Article
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