Gold trading outlook: futures little changed ahead of EU leaders special summit

Gold futures traded with a slight change on Tuesday, as investors were lying in wait for the special meeting of EU leaders in Brussels and some clarity in regard to Greeces future within the common currency bloc.

On the Comex division of the New York Mercantile Exchange, gold futures with delivery in August traded at $1,167.30 per troy ounce at 7:34 GMT, ticking up 0.06% on the day. On July 6th gold futures traded within the range $1161.90-$1174.40 per troy ounce and closed at $1173.20, appreciating 0.07% and extending gains from Friday, which followed a string of four consecutive trading days of losses.

Post-referendum situation in Greece and upcoming EU leaders special summit

Leaders and Finance Ministers from the 19 EZ Member States are expected to hold a special meeting today in order to seek resolution to the Greek debt crisis.

In a response to the Sunday referendum, German Chancellor Angela Merkel stressed that Greek policy makers were running out of time in their attempt to keep the country within the Euro area. “The last offer that we made was a very generous one,” Angela Merkel said yesterday at the Elysee Palace in Paris, cited by Bloomberg. “On the other hand, Europe can only stand together, if each nation takes on its own responsibility.”

Meanwhile, the period of bank closure in Greece has been extended through Wednesday. According to a Greek government official, who wished to remain anonymous, Greek PM Tsipras conducted a phone call with the European Central Bank President, Mario Draghi and requested the lifting of capital controls. For the time being the daily cash withdrawal from ATMs across the country remained capped at EUR 60 (USD 66) per person.

According to Bloomberg, during a conference call on Monday Euro region finance officials made a small step further towards bridging the gap between Greece and its trio of creditors.

Also on Monday, US Treasury Secretary, Jack Lew, talked to Greek PM Tsipras and the newly-appointed Minister of Finance, Euclid Tsakalotos, stressing that it was crucial to work “toward a constructive outcome that will allow Greece to make difficult but necessary fiscal and structural reforms, return to growth, and achieve debt sustainability within the Eurozone.”

Pivot Levels

According to Binary Tribune’s daily analysis, the central pivot point for gold futures is at $1,169.63. In case gold manages to breach the first resistance level at $1,177.97, it will probably continue up to test $1,182.73. In case the second key resistance is broken, the precious metal will probably attempt to advance to $1,191.07 per troy ounce.

If gold manages to breach the first key support at $1,164.87, it will probably continue to slide and test $1,156.53. With this second key support broken, the movement to the downside will probably continue to $1,151.77 per troy ounce.

The mid-Pivot levels for today are as follows: M1 – $1,154.15, M2 – $1,160.70, M3 – $1,167.25, M4 – $1,173.80, M5 – $1,180.35, M6 – $1,186.90.

In weekly terms, the central pivot point is at $1,168.97. The three key resistance levels are as follows: R1 – $1,182.13, R2 – $1,200.77, R3 – $1,213.93. The three key support levels are: S1 – $1,150.33, S2 – $1,137.17, S3 – $1,118.53.