Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

On Wednesday gold for delivery in December traded within the range of $1,064.00-$1,071.90. Futures closed at $1,070.80, gaining 0.20% on a daily basis, following a 1.38% slump on Tuesday, or the sharpest one since November 6th. The daily low has been the lowest level since February 10th 2010, when the yellow metal went down as low as $1,063.30. On the 4-hour time frame the 14-period Relative Strength Index indicated the commodity have lost value too suddenly (oversold conditions) in the recent couple of days, while buyers stepped in, causing the price to rebound from nearly 6-year lows.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in December were gaining 0.57% on Thursday to trade at $1,074.80 per troy ounce. The precious metal went up as high as $1,078.10 earlier today, marking its highest price level since November 16th, when a daily high of $1,092.40 was reached. The metal seemed to have encountered resistance at the middle Bollinger band on the 4-hour frame in the area between $1,078.00-$1,078.40.

Yesterday the minutes from Federal Reserves policy meeting in October showed that a rate hike in December seems likely, in case unexpected shocks do not impact the economic outlook, incoming data continue indicating labor market improvement and annual consumer inflation returns to the target, which provides price stability over a medium term.

According to excerpts from the October minutes: “…almost all members agreed it was appropriate to wait for additional information to clarify whether the recent deceleration in the pace of progress in the labor market was transitory or reflected more persistent factors that might jeopardize further progress. They indicated that they would be assessing a range of labor market indicators over the period ahead to confirm further improvement in the labor market. Members, however, expressed a range of views regarding the extent of further progress in labor market indicators they would need to see to judge it appropriate to raise the target range for the federal funds rate in December.”

“After assessing the outlook for economic activity, the labor market, and inflation and weighing the uncertainties associated with the outlook, all but one member agreed to leave the target range for the federal funds rate unchanged at this meeting. Members generally agreed that, in light of some weaker-than-expected readings on measures of labor market conditions and in the absence of greater confidence about the inflation outlook, it would be prudent to wait for additional information bearing on the medium-term outlook before initiating the process of policy normalization. One member, however, preferred to raise the target range for the federal funds rate by 25 basis points at this meeting.”

“…in determining whether it would be appropriate to raise the target range at its next meeting, it would assess both realized and expected progress toward its objectives of maximum employment and 2 percent inflation. Members emphasized that this change was intended to convey the sense that, while no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting, provided that unanticipated shocks do not adversely affect the economic outlook and that incoming data support the expectation that labor market conditions will continue to improve and that inflation will return to the Committees 2 percent objective over the medium term.”

Rate hike prospects tend to have a bearish impact on gold, as market players turn their attention to riskier assets such as stocks and high-yielding currencies.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for gold are presented as follows:

R1 – $1,071.52
R2 – $1,072.25
R3 (range resistance) – $1,072.97
R4 (range breakout) – $1,075.15

S1 – $1,070.08
S2 – $1,069.35
S3 (range support) – $1,068.63
S4 (range breakout) – $1,066.46

By using the traditional method of calculation, the weekly pivot levels for gold are presented as follows:

Central Pivot Point – $1,084.50
R1 – $1,087.70
R2 – $1,094.60
R3 – $1,097.80

S1 – $1,077.60
S2 – $1,074.40
S3 – $1,067.50

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: USD/CAD daily trading forecastForex Market: USD/CAD daily trading forecast Yesterday’s trade saw USD/CAD within the range of 1.3368-1.3458. The pair closed at 1.3421, up 0.16% on a daily basis, while marking a third straight trading day of gains. It has been the most modest daily rate of increase since September […]
  • Rheinmetall to build first armored vehicles in Ukraine next yearRheinmetall to build first armored vehicles in Ukraine next year Arms manufacturer Rheinmetall AG intends to construct its first armored vehicles in Ukraine next year, the German company’s Chief Executive Officer Armin Papperger told the WirtschaftsWoche magazine.According to the CEO, a deal with […]
  • Commodity Market: Pivot Levels for Thursday (March 16th 2017)Commodity Market: Pivot Levels for Thursday (March 16th 2017) Silver (SI) for May delivery (1 Troy Ounce)R1 – $16.973 R2 – $17.023 R3 (Range Resistance – Sell) – $17.073 R4 (Long Breakout) – $17.223 R5 (Breakout Target 1) – $17.398 R6 (Breakout Target 2) – $17.471S1 – $16.873 S2 – […]
  • AUD/USD plunged on Syria tensionAUD/USD plunged on Syria tension Australian dollar lost positions considerably against its US counterpart on Tuesday, as concerns appeared that the United States might consider a military intervention in Syria, which boosted demand for the greenback.AUD/USD plunged to its […]
  • Forex Market: EUR/USD daily trading outlookForex Market: EUR/USD daily trading outlook Yesterday’s trade saw EUR/USD within the range of 1.0619-1.0519. The pair closed at 1.0568, falling 0.36% on a daily basis, extending five days of losses.At 7:21 GMT today EUR/USD was down 0.09% for the day to trade at 1.0557. The pair […]
  • Forex Market: USD/JPY hits a six-week low as investors expect less aggressive Fed policy tighteningForex Market: USD/JPY hits a six-week low as investors expect less aggressive Fed policy tightening USD/JPY registered a fresh six-week trough on Monday, as market players continued betting on less aggressive policy tightening by the Federal Reserve amid risks of recession."U.S. interest rate expectations appear to have peaked (for […]