(Kitco News) - Comex December gold futures ended the U.S. day session sharply higher and hit a fresh six-week high Thursday. The precious yellow metal was boosted by the somewhat surprising interest rate cut by the European Central Bank and by more safe-haven investment demand as the EU debt crisis drags on. A weaker U.S. dollar index also helped to boost the precious metals markets Thursday. December gold last traded up $37.70 at $1,767.20 an ounce. Spot gold last traded up $28.60 an ounce at $1,766.50. December Comex silver last traded up $0.637 at $34.58 an ounce.

The European Central Bank and its new leader somewhat surprised the market place Thursday with a cut in its key interest rate. The raw commodity sector in general rallied on the news as it hints of further monetary policy easing around the world. That would be inflationary, which in turn is commodity market bullish.

The gold market is seeing more safe-haven investor demand amid the machinations of the European Union and its financial and sovereign debt problems. It’s a seemingly endless but predictable story of the proverbial can being kicked down the road—and gold is benefiting. Greece may or may not hold a referendum soon to decide whether to implement last week’s EU bailout package for that nation. The Group of 20 industrial nations is meeting in France Thursday and Friday, and will further address the matter. The bottom line is and has been that the EU’s problems are not being solved by just talking about it.

The U.S. dollar index was weaker Thursday on more of a corrective pullback from solid gains scored earlier this week. Thursday’s pullback in the dollar index was another bullish factor for the precious metals and other commodity markets. However, the dollar index bulls have gained some fresh upside near-term technical momentum this week.

Crude oil prices were solidly higher Thursday morning, and that was yet another bullish “outside market” force for the precious metals. Crude oil prices remain in a near-term uptrend.

The London P.M. gold fixing was $1,758.00 versus the previous P.M. fixing of $1,743.00.

Technically, December gold futures prices closed near the session high Thursday and hit a fresh six-week high. Bulls have the overall near-term technical advantage and gained more upside technical momentum Thursday. A six-week-old uptrend is in place on the daily bar chart. Bulls’ next upside technical objective is to produce a close above psychological resistance at $1,800.00. Bears’ next near-term downside price objective is closing prices below solid technical support at this week’s low of $1,681.20. First resistance is seen at $1,775.00 and then at $1,800.00. First support is seen at $1,754.00 and then at Thursday’s low of $1,724.00. Wyckoff’s Market Rating: 7.0.

December silver futures prices closed nearer the session high again Thursday. The key “outside markets” were again bullish for silver, as the U.S. dollar index was weaker, while crude oil was higher. The silver bulls have the overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price objective is producing a close above solid technical resistance at last week’s high of $35.70 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $31.23. First resistance is seen at Thursday’s high of $34.905 and then at $35.50. Next support is seen at $34.00 and then at Thursday’s low of $33.27. Wyckoff’s Market Rating: 6.5.

December N.Y. copper closed up 25 points 358.35 cents Thursday. Prices closed nearer the session high. The key “outside markets” were bullish for copper Thursday, as the U.S. dollar index was weaker, while crude oil was higher. 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 last week’s high of 375.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support 330.00 cents. First resistance is seen at 362.95 cents and then at 365.00 cents. First support is seen at 355.00 cents and then at 350.00 cents. Wyckoff’s Market Rating: 5.5.

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By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

Source: http://www.forbes.com/sites/kitconews/2011/11/03/comex-gold-ends-sharply-higher-on-ecb-rate-cut-more-safe-haven-demand/