On Tuesday gold for delivery in August traded within the range of $1,308.00-$1,318.25. Futures closed at $1,317.90, edging down 0.35% compared to Monday’s close. It has been the 151st drop in the past 282 trading days. The commodity has increased its advance to 8.97% 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 edging up 0.35% on Wednesday to trade at $1,322.50 per troy ounce. The precious metal went up as high as $1,326.50 during early European trade, while the current daily low was at $1,313.00 per troy ounce, recorded during the early 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 down 0.07% on the day at a level of 96.12, after tumbling to as low as 95.87 earlier, or its lowest level since June 24th. The index has advanced 0.29% so far in June, after surging 3.04% in May.
In a statement at the Chicago Council on Global Affairs on Tuesday, Federal Reserve Governor, Jerome Powell, expressed concerns that the British vote to part ways with the European Union could obstruct US growth at a moment when labor market momentum in the country might be showing signs of a slowdown. According to Powell, last Thursdays referendum had shifted global risks “to the downside”, which could undermine Federal Reserves outlook.
“For some time, the principal risks to (the U.S.) outlook have been from abroad,” Powell said, cited by Reuters. “The Brexit vote has the potential to create new headwinds for economies around the world, including our own.”
Market players see a 0% chance of a rate hike by the Federal Reserve occurring at the policy meeting in July, CMEs Fed Watch tool showed. However, there is a 5% chance of a reduction in borrowing costs. As far as the Banks September meeting is concerned, the probability of a rate cut occurring is estimated at 10.5%.
Today gold trading may be influenced by the monthly report on personal income and spending in the United States. Personal spending in the country probably rose 0.4% in May, according to market expectations, while personal income was probably up for a 14th consecutive month in May, increasing at a monthly rate of 0.3%. Higher-than-expected rates of increase imply good employment conditions and, therefore, are dollar positive. The Bureau of Economic Analysis is to publish the official figures at 12:30 GMT.
Meanwhile, silver futures for delivery in September were gaining 2.31% on the day to trade at $18.303 per troy ounce, after going up as high as $18.390 a troy ounce during the late phase of the Asian trading session. The latter has been the metals highest price level since September 2014.
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 – $1,314.72
R1 – $1,321.43
R2 – $1,324.97
R3 – $1,331.68
S1 – $1,311.18
S2 – $1,304.47
S3 – $1,300.93
By using the traditional method of calculation again, the weekly pivot levels for gold are presented as follows:
Central Pivot Point – $1,312.60
R1 – $1,372.25
R2 – $1.422.10
R3 – $1,481.75
S1 – $1,262.75
S2 – $1,203.10
S3 – $1,153.25
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
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