Gold trading outlook: futures trade close to fresh 3-week highs ahead of US report on consumer sentiment

On Thursday gold for delivery in August traded within the range of $1,258.10-$1,272.30. Futures closed at $1,268.00, surging 0.65% compared to Wednesday’s close. It has been the 49th gain in the past 92 trading days and also a second consecutive one. The daily high has been the highest price level since May 18th, when a high of $1,276.40 was registered. The commodity has added 4.66% to its value so far during the current month, following a 5.77% slump in May.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in August were edging up 0.13% on Friday to trade at $1,269.60 per troy ounce. The precious metal went up as high as $1,272.50 during early European trade, while the current daily low was at $1,267.00 per troy ounce, recorded during the late phase of the Asian trading session.

The US Dollar Index, a gauge reflecting the relative strength of the greenback against a basket of 6 other major currencies, was inching up 0.04% on the day at a level of 94.14, after reaching 94.25 earlier, or its highest level since June 6th. The index has trimmed losses to 1.83% so far in June, after advancing 3.04% in May. Weaker dollar usually favors demand for gold and other dollar-denominated commodities, as they tend to become cheaper to holders of other currencies.

Today gold trading may be influenced by the monthly report on consumer sentiment in the United States, released by Thomson Reuters in cooperation with the University of Michigan. It may show that consumer confidence in the United States was lower in June. The preliminary reading of the corresponding index, which usually comes out two weeks ahead of the final data, probably fell to 94.0 during the current month from a final reading of 94.7 in May. The latter came below the preliminary reading of 95.8, which was reported on May 13th. Still, the final index reading for May has been the highest since June 2015. Back then the gauge was reported at a final 96.1. In case the gauge of consumer sentiment fell at a steeper pace than projected in June, this would have a moderate-to-strong bearish effect on the US dollar and a moderate-to-strong bullish effect on gold. The preliminary reading is due out at 14:00 GMT.

Meanwhile, silver futures for delivery in July were edging up 0.23% on the day to trade at $17.285 per troy ounce, after going up as high as $17.340 a troy ounce during the early phase of the European trading session. The latter has been an exact test of the high from June 9th and also the highest price level since May 17th, when a high of $17.380 per troy ounce 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 – $1,266.13
R1 – $1,274.17
R2 – $1,280.33
R3 – $1,288.37

S1 – $1,259.97
S2 – $1,251.93
S3 – $1,245.77

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

Central Pivot Point – $1,227.87
R1 – $1,256.73
R2 – $1,273.37
R3 – $1,302.23

S1 – $1,211.23
S2 – $1,182.37
S3 – $1,165.73