On Wednesday gold for delivery in June traded within the range of $1,217.50-$1,230.20. Futures closed at $1,225.15, edging down 0.31% compared to Tuesday’s close. It has been the 41st drop in the past 81 trading days and also a sixth consecutive one. The daily low has been the lowest price level since April 5th, when a low of $1,215.40 was recorded. The precious metal has gone down 4.81% so far during the current month, following four consecutive months of advance.
On the Comex division of the New York Mercantile Exchange, gold futures for delivery in June were edging up 0.19% on Thursday to trade at $1,227.45 per troy ounce. The precious metal went up as high as $1,234.00 during early Asian trade, while the current daily low was at $1,222.00 per troy ounce, recorded during the early phase of the Asian session as well.
The US Dollar Index, a gauge reflecting the relative strength of the greenback against a basket of 6 other major currencies, was edging down 0.19% on the day at a level of 95.22, after reaching 95.11 earlier, while making an exact test of its low from May 23rd. The index has pared its advance to 2.33% so far in May. Stronger dollar usually pressures demand for gold and other dollar-denominated commodities, as they tend to become more expensive to holders of other currencies.
Today gold trading may be strongly influenced by the key monthly report on US durable goods orders. The value of durable goods orders probably rose 0.5% in April from a month ago, according to the median forecast by experts, following a 0.8% surge in March. At the same time, the value of durable goods orders, excluding transportation, probably rose 0.3% in April from a month ago, according to expectations, following a 0.2% contraction in March. In case the general index rose at a faster-than-projected pace in April, this would have a strong bullish effect on the US dollar and a strong bearish effect on gold, due to positive implications in regard to the wider gauge of production, factory orders. The US Census Bureau is scheduled to release the official report at 12:30 GMT.
A separate report by the US Labor Department may show that the number of people in the country, who filed for unemployment assistance for the first time during the business week ended on May 20th, fell to 275 000, according to market consensus, from 278 000 in the preceding week. In case the number of claims met expectations or decreased further, this would have a moderate bullish effect on the US dollar and a moderate bearish effect on gold.
Meanwhile, silver futures for delivery in July were up 0.73% on the day to trade at $16.450 per troy ounce, after going up as high as $16.500 a troy ounce during the mid phase of the Asian trading session. The latter has been the highest price level since May 23rd, when a high of $16.590 was registered.
Daily and Weekly Pivot Levels
By employing the traditional calculation method, the daily pivot levels for gold are presented as follows:
Central Pivot Point – $1,224.28
R1 – $1,231.07
R2 – $1,236.98
R3 – $1,243.77
S1 – $1,218.37
S2 – $1,211.58
S3 – $1,205.67
By using the traditional method of calculation again, the weekly pivot levels for gold are presented as follows:
Central Pivot Point – $1,262.57
R1 – $1,277.63
R2 – $1,302.87
R3 – $1,317.93
S1 – $1,237.33
S2 – $1,222.27
S3 – $1,197.03
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