Gold settled slightly higher Friday finishing the first week of the new year positive, under pressure by positive economic developments but buoyed by manufacturing strength. The Labor Department released its payroll data reporting positive, although lower than expected, job creation with notable job growth on a percentage basis in logging and residential construction and reductions in coal mining and petroleum and coal products. The unemployment rate remained unchanged at 4.1% and wage growth was at 2.5% year over year. The U.S. trade deficit grew higher than expected in November to $50.5B, even though the weakened dollar helped exports of U.S. goods and services overseas the strong domestic demand for imports surpassed those gains. November factory orders was released by the Commerce Department showing a rise in new orders for U.S. made goods, as well as revising the October number up into positive territory. The ISM non-manufacturing report released today showed an unexpected drop in the index although still at levels indicating growth in the service sector.
For February gold, an open tomorrow above the pivot of 1,321.0 would show near term resistance at 1,326.0 while a breakout above this level would see longer term resistance at 1,329.8. An open below the pivot would have near term support down at 1,317.2, and a sell off below this would show longer term support at 1,312.2.
Bullion on Bullion
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RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.