Comex February gold futures prices are trading near unchanged in early U.S. dealings Tuesday. The market is trying to stabilize following recent strong selling pressure that saw prices hit a fresh seven-week low overnight. Fresh near-term technical damage has been inflicted in gold with Mondays sharp losses. February gold last traded up $1.00 at $1,669.20 an ounce. Spot gold charts last traded down $0.20 an ounce at $1,665.75. March Comex silver last traded up $0.378 at $31.38 an ounce.

Gold market traders are doing a bit of nibbling and bargain hunting after the recent selling pressure. Some fresh physical demand from India has also been reported Tuesday, following the recent dip in prices.

There have been no major fresh developments on the European Union debt crisis scene. An Italian bond auction was fairly well subscribed and Moodys put some more European banks on watch. There are several U.S. economic reports due out Tuesday, and also the FOMC meets and will issue a statement early Tuesday afternoon.

The U.S. dollar index is trading slightly lower Tuesday morning, following  strong gains Monday. The dollar index bulls still have the solid overall near-term technical advantage, which is a major bearish underlying factor for the precious metals markets. Crude oil and many other commodity market prices are trading firmer Tuesday morning, which is a positive for the precious metals. Crude oil has been and will continue to be an important outside market for the precious metals.

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This entry was posted on Tuesday, December 13th, 2011 at 3:18 pm and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.