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On Wednesday gold for delivery in February traded within the range of $1,070.60-$1,086.00. Futures closed at $1,071.70, falling 0.43% on a daily basis and marking their third consecutive trading day of losses.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in February were losing 0.29% on Thursday to trade at $1,073.40 per troy ounce. The precious metal went down as low as $1,071.30 earlier today, undershooting the daily S1 level. Resistance may be encountered at the 23.60% Fibonacci level ($1,078.82), which reflects the descent from October 28th high to December 3rd low, while support may be received at the hourly 200-period EMA ($1,070.80-$1,071.20 area) and after that at the low from December 7th ($1,067.40).

Expectations of a rate hike by the Fed next week continued to support the US dollar and to pressure gold. The reports on US retail sales and producer prices, scheduled for release on Friday, may additionally bolster that case. Monthly retail sales are expected to have increased 0.3% in November, following another 0.1% climb in the prior month, while annual producer prices are expected to have dropped at a slower rate in November (-1.2%) compared to the 1.6% slump reported in October. Higher rates of increase in retail sales and a slower drop in producer prices than anticipated would support hike prospects.

The dollar index, which tracks the relative strength of the US dollar against a basket of six other major currencies, was gaining 0.41% on the day to trade at 97.73, after climbing as high as 97.75 earlier. The gauge is about to register its first daily advance in the past three trading days.

Daily and Weekly Pivot Levels

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

R1 – $1,073.11
R2 – $1,074.52
R3 (range resistance) – $1,075.94
R4 (range breakout) – $1,080.17

S1 – $1,070.29
S2 – $1,068.88
S3 (range support) – $1,067.47
S4 (range breakout) – $1,063.23

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

Central Pivot Point – $1,073.17
R1 – $1,100.13
R2 – $1,115.77
R3 – $1,142.73

S1 – $1,057.53
S2 – $1,030.57
S3 – $1,014.93

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