Gold trading outlook: futures settle below the $1,300 mark, as Brexit concerns fade

On Friday gold for delivery in August traded within the range of $1,280.30-$1,300.10. Futures closed at $1,292.50, edging down 0.28% compared to Thursday’s close. It has been the 44th drop in the past 98 trading days. In weekly terms, the precious metal added 1.50% to its value during the past week. It has been the 13th gain in the past 24 weeks and also a third consecutive one. The commodity has trimmed its advance to 5.84% so far during the current month, following a 5.77% slump registered in May.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in August were down 0.46% on Monday to trade at $1,286.55 per troy ounce. The precious metal went up as high as $1,295.25 during early Asian trade, while the current daily low was at $1,283.00 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 edging down 0.64% on the day at a level of 93.74, after reaching 93.55 earlier, or its lowest level since June 9th. The index has extended losses to 2.24% so far in June, after advancing 3.04% in May.

Safe-haven instruments, such as gold, seemed to have lost their appeal, as market concerns over a potential Brexit faded, after a series of weekend polls had revealed that the “Remain” campaign regained traction mere days before the highly anticipated EU membership referendum. The implied probability that UK voters will support the EU membership on June 23rd rose to 72% from 65% earlier.

No relevant reports and events, which may influence gold trading, are expected today. On Tuesday Fed Chair, Janet Yellen, is scheduled to testify before the Senate Banking Committee, while on Wednesday she is to speak before the House Financial Services Committee.

Market participants are currently expecting a 7% probability of a rate hike occurring at the FOMCs policy meeting next month, while the chance for such an event to occur in September was 24%, according to CME Groups FedWatch tool.

Meanwhile, silver futures for delivery in July were edging down 0.26% on the day to trade at $17.405 per troy ounce, after going down as low as $17.320 a troy ounce during the late phase of the Asian trading session.

Daily, Weekly and Monthly Pivot Levels

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

Central Pivot Point – $1,290.97
R1 – $1,301.63
R2 – $1,310.77
R3 – $1,321.43

S1 – $1,281.83
S2 – $1,271.17
S3 – $1,262.03

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

Central Pivot Point – $1,293.97
R1 – $1,314.93
R2 – $1,337.37
R3 – $1,358.33

S1 – $1,271.53
S2 – $1,250.57
S3 – $1,228.13

In monthly terms, for the yellow metal we have the following pivots:

Central Pivot Point – $1,239.40
R1 – $1,279.80
R2 – $1,344.80
R3 – $1,385.20

S1 – $1,174.40
S2 – $1,134.00
S3 – $1,069.00