• Gold futures on the COMEX division of the New York Mercantile Exchange rose Friday on weakness in the U.S. dollar and uncertainty surrounding Donald Trump's presidency.
• The most active gold contract for February delivery rose 3.4 U.S. dollars, or 0.28 percent, to settle at1,204.90 dollars per ounce.
• Silver for March delivery rose 3 cents, or 0.18 percent, to close at 17.032 dollars per ounce.
• Gold was clobbered Thursday as the dollar gained on the combination of inaction on interest rates from the European Central Bank and relatively hawkish comments from Federal Reserve chief Janet Yellen this week.
• On Friday, uncertainty surrounding the early presidency of Trump hovered over financial markets. Trump recently suggested he favored a weaker dollar and his Treasury secretary pick, Steven Mnuchin, worked hard Thursday to clarify that stance.
• Gold prices turned up on Friday, as the dollar fell and U.S. Treasury yields came off their highs after Donald Trump was sworn in as U.S. president. Trump pledged to end the "American carnage" of social and economic woes in an inaugural address that was a populist and nationalist rallying cry, prompting investor concern aboutprotectionist trade policies.
• "I think some of the populist issue themes that he's touched on are supportive of gold," said James Steel, chief metals analyst for HSBC Securities in New York.
• Spot gold was up 0.5 percent at $1,211.30 an ounce by 3:04 p.m. EST (2004 GMT).
• "Gold has dropped back from quite a significant technical level around $1,220, a critical retracement of last year's high to low move. I would say from here the risks are skewed to the downside in the short term," Mitsubishi's Butler said.
• Gold shrugged off better-than-expected U.S. jobs, housing and factory data that reinforced the view that the U.S. economy is sufficiently robust to warrant interest rate rises.
• Philadelphia Federal Reserve President Patrick Harker said on Friday he expected three interest rate increases in 2017 if the labor market improves further and inflation moves to the Federal Reserve's 2 percent goal. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion while boosting the dollar, in which it is priced.
• CME 30-Day Fed Fund futures are not expecting any interest rate hike in February; however with the meeting and statement could set the tone for the rest of the year.
Currently, June is see as the most likely month for the first rate hike. Markets are pricing in a more than 70%chance of at least 25 basis point move.
• For most technical analysts, the $1,208 to $1,210 an ounce area represents an important resistance channel.
• Harmon said that it is difficult to get excited for gold unless prices can move towards $1,225 an ounce.
On the downside, he said that a break below $1,190 could lead to a retest of the December lows around $1,140an ounce.
• “Right now the market is kind of in limbo, waiting for something to happen,” he said.
• While momentum appears to be waning for gold, Lawler said that he could see gold pull back to $1,180 in a “perfectly healthy correction.” He added that even a drop to $1160 wouldn’t be a major concern and could attract some buying interest.
• Chris Beauchamp, market analyst at IG said that a push below $1,200 could lead to a test of $1,186 an ounce; at the same time for the gold market to regain its momentum, prices have to push above $1,220 an ounce.
Reference: Xinhua, Reuters, Kitco
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