Gold trading outlook: futures gain ground ahead of key US consumer confidence data

On Monday gold for delivery in April traded within the range of $1,203.00-$1,226.10. Futures closed at $1,209.30, plunging 1.71% compared to last Fridays close. It has been the 6th drop in the past 16 trading days and also the sharpest one since February 15th, when the metal lost 2.5% of its value. In addition, the daily low was a higher-low test of the low from February 18th.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in April were gaining 0.84% on Tuesday to trade at $1,219.40 per troy ounce. The precious metal went up as high as $1,223.40 during late Asian trade, while the current daily low was at $1,207.70 per troy ounce. The commodity seemed to have found support at that level in the past several hours of trade.

On Monday gold was still pressured by the strong US consumer inflation figures, released last week, as the latter were seen as bolstering the case of another hike in borrowing costs by the Fed in the upcoming months.

Today gold trading may be influenced by the key report on US consumer confidence regarding February, released by the Conference Board research group. Confidence among consumers in the United States probably worsened in February, with the corresponding index coming in at a reading of 97.3, according to market expectations, down from 98.1 in January. The latter has been the highest level of confidence since September 2015. In case the benchmark fell more than expected, this would have a strong bearish effect on the US dollar and a strong bullish effect on gold, respectively, as lower confidence suggests a lesser willingness to spend and, thus, a slower economic growth. The official reading is due out at 15:00 GMT.

Silver futures for delivery in March were edging up 0.23% on the day to trade at $15.235 per troy ounce, after advancing to as high as $15.325 during late Asian trade. Yesterday silver depreciated over 1%, while extending the drop from February 19th.

Daily and Weekly Pivot Levels

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

Central Pivot Point – $1,212.80
R1 – $1,222.60
R2 – $1,235.90
R3 – $1,245.70

S1 – $1,199.50
S2 – $1,189.70
S3 – $1,176.40

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

Central Pivot Point – $1,221.07
R1 – $1,248.53
R2 – $1,266.67
R3 – $1,294.13

S1 – $1,202.93
S2 – $1,175.47
S3 – $1,157.33