On Tuesday (in GMT terms) gold for delivery in December traded within the range of $1,338.9-$1,348.8. Futures closed at $1,346.1, edging up 0.20% compared to Monday’s close. It has been the 153rd gain in the past 322 trading days. The precious metal has trimmed its slump to 0.84% so far in August, after surging 2.86% in July.
On the Comex division of the New York Mercantile Exchange, gold futures for delivery in December were edging down 0.36% on Wednesday to trade at $1,341.2 per troy ounce. The precious metal went up as high as $1,344.1 during early European trade, while the current daily low was at $1,339.4 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 up 0.12% on the day at a level of 94.61, after going up as high as 94.67 earlier. The gauge has pared its slump to 0.92% so far during the current month, following a 0.74% retreat in July.
Today gold trading may be influenced by the monthly report on existing home sales in the United States. The index of existing home sales probably dropped 0.4% to a level of 5.51 million in July compared to June, according to the median estimate by experts. In June sales were 1.1% higher from a month ago to reach 5.57 million, or a level unseen since February 2007. In case the index decreased at a steeper monthly rate than anticipated, this would have a limited-to-moderate bearish effect on the US dollar and would support gold. The National Association of Realtors (NAR) is to release the official figure at 14:00 GMT.
Gold has recently been pressured following a set of rather hawkish remarks by several Federal Reserve officials. At a conference in Aspen, Colorado during the weekend, Feds vice chairman, Stanley Fischer said the central bank was close to achieving its objectives for full employment and 2% annual inflation. Last week the Fed President for San Francisco, John Williams noted that a too long stand-by period for borrowing costs could damage US economy. Additionally, the Fed President for New York, William Dudley, and the Fed President for Atlanta, Dennis Lockhart, have also expressed their support of the view that the Bank needs to return to an expected run of gradual interest rate increases.
Market focus is to gradually shift to the key Jackson Hole symposium at the end of the week, where the Fed Chair, Janet Yellen, may deliver hints over the timing of the Banks next move on interest rates.
According to CME’s FedWatch Tool, as of August 23rd, market players saw a 21.0% chance of a rate hike occurring at the Federal Reserve’s policy meeting in September, up from 15.0% in the prior business day, and a 25.9% chance of a hike in November, up from 22.0% during the preceding day. As far as the December meeting is concerned, the probability of such a move was seen at 50.6% on August 23rd, up from 48.1% in the preceding business day.
Meanwhile, silver futures for delivery in September were shedding 0.43% to trade at $18.840 per troy ounce, after going down as low as $18.788 a troy ounce during the early phase of the European trading session.
Daily, Weekly and Monthly Pivot Levels
By employing the Camarilla calculation method, the daily levels of importance for gold are presented as follows:
R1 – $1,347.0
R2 – $1,347.9
R3 (Range Resistance – Sell) – $1,348.8
R4 (Long Breakout) – $1,351.5
R5 (Breakout Target 1) – $1,354.7
R6 (Breakout Target 2) – $1,356.1
S1 – $1,345.2
S2 – $1,344.3
S3 (Range Support – Buy) – $1,343.4
S4 (Short Breakout) – $1,340.7
S5 (Breakout Target 1) – $1,337.5
S6 (Breakout Target 2) – $1,336.1
By using the traditional method of calculation, the weekly levels of importance for gold are presented as follows:
Central Pivot Point – $1,350.3
R1 – $1,360.2
R2 – $1,374.1
R3 – $1,384.0
R4 – $1,393.8
S1 – $1,336.4
S2 – $1,326.5
S3 – $1,312.6
S4 – $1,298.6
In monthly terms, for the yellow metal we have the following pivots:
Central Pivot Point – $1,348.5
R1 – $1,386.5
R2 – $1,415.4
R3 – $1,453.4
R4 – $1,491.4
S1 – $1,319.5
S2 – $1,281.5
S3 – $1,252.6
S4 – $1,223.6
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