Gold settled higher Thursday in the third trading day of the new year continuing the momentum from earlier this week. The ADP December jobs reports was released today showing strong employment growth surpassing expectations and the highest levels seen since March. This led stock indices to sustain their charge forward, but was shrugged off by the gold market.
Global construction and manufacturing demand continue to boom, both adding to the demand of Copper, finishing slightly higher today. Looking out over 2018 we will need to continually monitor the demand from China, as their economy is predicted to cool down, as well as possible supply shocks from Chile. After expanding its pro-labor laws, Chile could see miner strikes throughout 2018 during ongoing wage disputes.
Most notably today, Palladium, used mostly in car exhaust systems, hit another all time high today as continued demand pushes it into higher territory.
For February gold, an open tomorrow above the pivot of 1,317.0 would show near term resistance at 1,326.9 while a breakout above this level would see longer term resistance at 1,332.2. An open below the pivot would have near term support down at 1,311.7, and a sell off below this would show longer term support at 1,301.8.
Bullion on Bullion
** Call me for a complimentary consultation on any of your future and futures needs **
Michael Bullion, CAIA
Senior Technical Analyst
Walsh Trading, Inc.
Direct: 312.985.0156
888.391.7894
Fax: 312.256.0109
www.walshtrading.com
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.