• Gold prices edged lower on Tuesday but held not far off a six-week high hit in the previous session, as investors awaited a confirmation hearing for U.S. Federal Reserve chair nominee Jerome Powell and a possible Senate vote on U.S. tax reforms.
Spot gold was down 0.1 percent at $1,293.00 an ounce at 0435 GMT. On Monday, the metal touched a high of $1,299.13 an ounce, its highest since Oct. 16.
U.S. gold futures dipped 0.1 percent at $1,293.10.
• In remarks prepared for his Tuesday hearing released by the Fed, Powell defended the central bank’s use of broad crisis-fighting powers positioning himself as an extension of the central bank policies of current Chair Janet Yellen and her predecessor Ben Bernanke.
• “His (Powell‘s) decisions on rates are suggested to be almost indistinguishable from those of his predecessor, but I would not be surprised if in the next few months we see him taking a dovish path,” ActivTrades chief analyst Carlo Alberto de Casa said.
“I don’t think he will push to raise rates too much, but will instead monitor U.S. inflation and the job market.”
• The U.S. dollar was treading water on Tuesday with the near-term focus on any Senate vote on the U.S. tax plan later in the week.
• Reports suggesting that North Korea may be preparing for another ballistic missile launch could spur some safe haven buying later in the day, analysts said.
• Speculators cut their net long positions in COMEX gold and silver contracts in the week to Nov. 21, U.S. Commodity Futures Trading Commission (CFTC) data showed on Monday. Speculators cut their net long position in gold by 3,944 contracts to 177,066 contracts in the week.
• Spot gold may seek a support around $1,292 per ounce, and then resume its rally towards a resistance at $1,301, according to Reuters technical analyst Wang Tao.
• Meanwhile, silver was up 0.1 percent at $17.04 an ounce, platinum gained 0.1 percent at $948.10, while palladium was down 0.2 percent at $1,004.50.
• Technically, February gold futures prices closed nearer the session high today. The bulls have the overall near-term technical advantage. Prices are in a gentle, four-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,325.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,267.00. First resistance is seen at today’s high of $1,303.40 and then at the October high of $1,312.70. First support is seen at today’s low of $1,290.70 and then at $1,283.10. Wyckoff's Market Rating: 6.0
Reference: Reuters, Kitco
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