Gold settled higher Wednesday on a weakened U.S. dollar, touching an intraday peak of $1,328.60, a 4 month high. China announced that it is considering slowing U.S. Treasury purchases, pushing yields to new highs as well as putting downward pressure on the U.S. dollar. The U.S. dollar felt additional pressure as U.S. import prices for December came in lower than expected, while export prices fell. Markets are looking to the retail sales and inflation reports due out at the end of the week.
Other precious metal futures also gained in today’s session, with March silver futures rising to $17.035 a troy ounce, April platinum futures to $978.80, while March copper futures settled slightly up to $3.2355.
For February gold, an open Monday above the pivot of $1,318.90 would show near term resistance at $1,329.00 while a breakout above this level would see longer term resistance at $1,338.60. An open below the pivot would have near term support down at $1,309.30, and a sell off below this would show longer term support at $1,299.20.
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.