Gold trading outlook: futures edge lower on recovering US dollar

On Thursday gold for delivery in June traded within the range of $1,224.60-$1,242.90. Futures closed at $1,236.20, going up 1.12% on a daily basis. It has been the 24th gain in the past 47 trading days and also the sharpest one since March 29th, when the yellow metal added 1.29% to its value. In addition, the daily high has been the highest price level since March 30th, when gold went up as high as $1,245.00 a troy ounce. The commodity has lost a meager 0.02% of its value so far during the current month, following three consecutive months of advance.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in June were inching down 0.03% on Friday to trade at $1,235.90 per troy ounce. The precious metal went up as high as $1,242.40 during the early phase of the Asian trading session, while the current daily low was at $1,233.10 per troy ounce, recorded during early European trade.

On Thursday gold held gains on the back of rather dovish FOMC minutes, that hinted a probable delay of the next rate hike. The document, released a day ago, revealed that Fed policy makers anticipated a moderate US economic growth and improving labor market indicators, in spite of the risks posed by global economic and financial developments. At the policy meeting on March 15th-16th FOMC policy makers voted 9 to 1 in favor of keeping the target range for the federal funds rate intact between 0.25% and 0.50%, as Fed President for Kansas, Esther George, favored a 25-basis-point increase. Any prospects of hike delay tend to have a considerable bullish effect on gold, as the latter becomes a more attractive investment in comparison with high-yielding assets.

Meanwhile, silver futures for delivery in May were edging up 0.57% on the day to trade at $15.245 per troy ounce, after going up as high as $15.275 a troy ounce during the late phase of the Asian trading session.

Daily and Weekly Pivot Levels

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

Central Pivot Point – $1,234.57
R1 – $1,244.53
R2 – $1,252.87
R3 – $1,262.83

S1 – $1,226.23
S2 – $1,216.27
S3 – $1,207.93

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

Central Pivot Point – $1,225.47
R1 – $1,241.73
R2 – $1,261.27
R3 – $1,277.53

S1 – $1,205.93
S2 – $1,189.67
S3 – $1,170.13