• Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday on a technical bounce, despite weakness in the U.S. dollar and U.S. equities.
• The most active gold contract for February delivery fell 3.6 U.S. dollars, or 0.30 percent, to settle at 1,196.20 dollars per ounce.
• Trading volume was notably lower on Friday than on Thursday as traders are preparing to leave for the long holiday weekend. Analysts note that gold hit a key technical resistance level and fell as a result, despite a weaker U.S. dollar and equities.
• The U.S. Dollar Index fell by 0.28 percent to 101.17 as of 1830 GMT.
• Next week will see a shortened trading week as the U.S. Martin Luther King Jr. holiday will result in the markets closing on Monday.
• Wall Street and Main Street alike look for gold to continue its recent rally next week, according to a pair of Kitco News gold surveys.
• “I am bullish on gold for next week,” said Colin Cieszynski, chief market analyst in Canada for CMC Markets. “Political risk is back! The street has been overcomplacent about Trump but this week’s press conference showed that the economy is one of many priorities. With Inauguration Day coming on Friday, the rubber hits the road and the street is likely to get a reminder that politics doesn't move at the speed of the market.”
He characterizes the U.S. dollar as looking “vulnerable.” Additionally, Brexit “is going to be front and center” again in the next week, with U.K. Prime Minister Theresa May due to deliver a speech Tuesday on her country’s plans to exit from European Union, Cieszynski added.
• Henry To, analyst at CB Capital Partners, and George Gero, managing director with RBC Wealth Management, also looks for gold to rise next week.
• Bob Haberkorn, senior commodities broker with RJO Futures, figures higher inflation could offer some support for gold, but said this also means continued potential for Federal Reserve rate hikes that would boost the dollar and hurt gold. The area around $1,200 is also offering some resistance, he added. Gold poked above this level this week but has not been able to generate further upside momentum.
• Silver for March delivery fell 6 cents, or 0.36 percent, to close at 16.765 dollars per ounce. Platinum for April delivery added 1.7 dollars, or 0.17 percent, to close at 986.40 dollars per ounce.
Reference: Xinhua, Kitco
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