Tuesday, September 6, 2011
Crude Oil, Gold and Natural Gas Market Commentary For Tuesday Afternoon
Gold futures closed down 8.00 an ounce at $1,868.70 today. Prices closed nearer the session low today after hitting a fresh all time record high of $1,923.70 in overnight trading. Profit taking pressure was featured as the day wore on. A stronger U.S. dollar index and lower crude oil prices were also bearish factors for gold today. The fact that U.S. stock indexes had moved well off their daily lows by the time gold closed was also negated for the precious yellow metal.
Natural gas closed up 5.6 cents at $3.928 today. Prices closed nearer the session high today and saw short covering in a bear market. Bears still have the solid near term technical advantage. The next upside price breakout objective for the bulls is closing prices above solid technical resistance at $4.159.
The U.S. stock indexes closed weaker today but well up form the session lows. Last Friday morning's very week U.S. jobs report has sunk the indexes. Key for the stock index bulls is to hold prices above the August lows. If they can do that, then those lows will likely mark major lows. If U.S. stock indexes drop below the August lows, then fresh, serious chart damage would be inflicted to suggest a fresh leg down in prices in the near term. Trading action in the stock indexes this week will be extra important.
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