Gold held the first advance in 10 days as investors looked ahead to the release of U.S. data this week, including payrolls figures, that’ll help shape the thinking of Federal Reserve policy makers on whether to raise rates in the months ahead.
Bullion for immediate delivery traded at $1,217.45 an ounce at 8:32 a.m. in Singapore from $1,215.32 on Tuesday, when the metal rose 0.9 percent, according to Bloomberg generic pricing. Higher rates tend to hurt bullion, which doesn’t pay interest.
Gold prices ended the U.S. day session near unchanged Tuesday, after hitting a 3.5-month low overnight. Prices are in a steep four-week-old downtrend on the daily bar chart as there is scant, fresh bullish fundamental news to be found. This is allowing the chart-based traders to dominate as the near-term technical postures for gold and silver have deteriorated. August Comex gold was last up $0.50 an ounce at $1,217.20. July Comex silver was last down $0.259 at $16.01 an ounce.
Gold prices did move up from the daily lows in late-morning trading, on some bargain hunting in the cash market and some short covering in the futures market.
Technically, August gold futures prices closed nearer the session high after hitting a 3.5-month low early on today. The gold bulls and bears are now on a level overall near-term technical playing field as bulls have faded badly recently. Prices are in a four-week-old downtrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at Friday’s high of $1,225.80 and then at $1,237.20. First support is seen at $1,207.70 and then at $1,200.00. Wyckoff’s Market Rating: 5.0
Reference: Bloomberg, Kitco
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