Gold Gets Modest Boost On Deutsche Bank Worries, Rallying Crude Oil

(Kitco News) - Gold prices ended the U.S. day session firmer Thursday and were lifted by concerns about a big German Bank staying liquid and by higher crude oil prices. December Comex gold was last up $3.00 an ounce at $1,326.80. December Comex silver was last up $0.079 at $19.20 an ounce.

News reports surfaced just before midday that several hedge funds had downgraded the already troubled German Deutsche Bank. That news sent the German bank's stock down farther and also put significant downside pressure on the U.S. stock market. This, in turn, helped to lift safe-haven gold prices modestly higher. Some short covering in the futures market and bargain hunting in the cash market, following this week's selling pressure, also supported gold and silver prices Thursday.

Nymex crude oil futures saw follow-through buying interest Thursday following the surprise news Wednesday afternoon that the OPEC oil cartel, at its meeting in Algiers, reached a preliminary agreement to reduce its collective oil production by a bit less than 1 million barrels a day. The deal will be finalized at OPEC's November meeting. Most energy market watchers did not believe OPEC would make any significant moves to reduce their crude oil output at this week's meeting.  Some in the energy industry are still skeptical a final agreement will be reached in November, saying that Iran and Saudi Arabia will not work together to cut oil output.

Crude oil is the leader of the raw commodity sector. When oil rallies, that usually prompts buying interest in other raw commodity markets, including the precious metals.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Technically, December gold futures prices closed near mid-range today. The gold bulls still have the overall near-term technical advantage but have faded this week. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,357.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,305.50. First resistance is seen at today's high of $1,329.40 and then at $1,335.00. First support is seen at today's low of $1,318.60 and then at $1,309.20. Wyckoff's Market Rating: 6.0

December silver futures prices closed near mid-range today on mild short covering. The silver market bulls have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the September high of $20.235 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $18.46. First resistance is seen at today's high of $19.46 and then at $19.61. Next support is seen at this week's low of $18.975 and then at the September low of $18.715. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed down 15 points at 218.60 cents today. Prices closed nearer the session low today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 212.00 cents. First resistance is seen at the September high of 220.65 cents and then at 222.50 cents. First support is seen at this week's low of $2.1610 and then at 213.90 cents. Wyckoff's Market Rating: 5.5.

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