After Mixed Data Gold Settles Slightly Lower
We saw several data releases that were a mixed bag for Gold. Initial jobless claims announced today are at the lowest level since February 1973. U.S. housing starts fell 8.2% MoM, while new building permits came in better than expected somewhat offsetting the housing starts data. The Philly Fed survey showed weaker than expected sentiment, the lowest level since December 2016. Crypto’s regained some of the losses over the previous two sessions, while the U.S. Dollar Index fell slightly. At the end of the session, Gold finished close to where it started, settling down to $1,327.20.
March silver futures settled down to $16.954 a troy ounce, April platinum futures fell to $1,007.20 a troy ounce, while March copper futures settled up to $3.199 per pound. March Palladium futures retraced the gains from yesterday down to $1,093.30 a troy ounce.
For February gold, an open in the next session above the pivot of $1,328.30 would show near term resistance at $1,332.20 while a breakout above this level would see longer term resistance at $1,337.30. An open below the pivot would have near term support down at $1,323.20, and a sell off below this would show longer term support at $1,319.30.
Bullion on Bullion.
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Michael Bullion, CAIA
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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.