Gold settled lower Monday with a rally in the dollar amid renewed expectations that the Federal Reserve will hike interest rates at their next meeting. Even though the jobs report released Friday was slightly disappointing, showing less than expected job growth, investors still believe the Fed will raise rates in March as the San Francisco Fed President Williams iterated over the weekend that three increases to the rates for 2018 remained appropriate. As you know, an increase in interest rates typically signal downward pressure on the metal with investors favoring higher yielding assets.
For other precious metal futures, March silver futures fell to $17.14 a troy ounce, while April platinum futures gained to $976.40. March copper futures settled slightly down to $3.224 feeling downward pressure with an increase in Shanghai’s copper inventory to a 5 week high.
For February gold, an open Monday above the pivot of 1,319.7 would show near term resistance at 1,323.7 while a breakout above this level would see longer term resistance at 1,327.0. An open below the pivot would have near term support down at 1,316.4, and a sell off below this would show longer term support at 1,312.4.
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.