Gold trading outlook: futures trade not far from 1-month lows ahead of Yellen’s statement, US Consumer Confidence Index

On Monday gold for delivery in June traded within the range of $1,210.00-$1,224.80. Futures closed at $1,224.40, surging 0.63% on a daily basis. It has been the 20th gain in the past 39 trading days. The daily low has been the lowest level since February 23rd, when a low of $1.207.40 was recorded. Gold has lost 1.09% of its value so far during the current month.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in June were losing 0.41% on Tuesday to trade at $1,219.40 per troy ounce. The precious metal went down as low as $1,217.00 during the early phase of the European trading session, while the current daily high was at $1,224.70 per troy ounce, recorded during early Asian trade.

Following the Monday speech by the Fed President for San Francisco, John Williams, who reiterated the 2016 rate hike view, market focus now shifts to Fed Chair Janet Yellens statement, scheduled at 16:30 GMT. It may provide further hints over the future path of borrowing costs in the US.

In addition, today gold trading may be strongly influenced by the results from the monthly survey on US consumer confidence, released by the Conference Board research group. The survey may show that confidence among consumers in the country rebounded in March, with the corresponding index coming in at a reading of 94.0, according to market expectations. In February the gauge was reported at 92.2, or the lowest since July 2015. In case the index came above expectations, this would have a strong bullish effect on the US dollar and a strong bearish effect on gold, as higher confidence suggests a greater willingness to spend and, respectively, an accelerated economic growth. The official index reading is due out at 14:00 GMT.

Meanwhile, silver futures for delivery in May were retreating 0.62% on the day to trade at $15.155 per troy ounce, after going down as low as $15.115 a troy ounce during the early phase of the European trading session. It has been the lowest price level since March 24th, when the commodity recorded a daily low of $15.105 per troy ounce.

Daily and Weekly Pivot Levels

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

Central Pivot Point – $1,219.73
R1 – $1,229.47
R2 – $1,234.53
R3 – $1,244.27

S1 – $1,214.67
S2 – $1,204.93
S3 – $1,199.87

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

Central Pivot Point – $1,230.60
R1 – $1,247.00
R2 – $1,272.60
R3 – $1,289.00

S1 – $1,205.00
S2 – $1,188.60
S3 – $1,163.00