Gold trading outlook: futures distance from three-week highs as the greenback regains ground

On Friday gold for delivery in February traded within the range of $1,058.70-$1,088.80. Futures closed at $1,084.50, surging 2.15% on a daily basis, or the most since August 20th, when the commodity added 2.21% to its value. The daily high has been the highest price level since November 16th, when the metal went up as high as $1,092.40.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in February were losing 0.77% on Monday to trade at $1,075.80 per troy ounce. The precious metal slid as low as $1,075.70 earlier today, overshooting the range support level (S3). Short-term support was to be found at the 23.60% Fibonacci level ($1.078.82) reflecting the descent from October 28th high to December 3rd low, but as the yellow metal broke below it, the next support may be expected at the hourly 55-period Exponential Moving Average.

The dollar index, which tracks the relative strength of the US dollar against a basket of six other major currencies, was gaining 0.53% on the day to trade at 98.79, after advancing to as high as 98.90 earlier, or its highest level since December 3rd. Resistance may be encountered in the area around the current daily high of $1,086.10.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for gold are presented as follows:

R1 – $1,087.26
R2 – $1,090.02
R3 (range resistance) – $1,092.78
R4 (range breakout) – $1,101.06

S1 – $1,081.74
S2 – $1,078.98
S3 (range support) – $1,076.22
S4 (range breakout) – $1,067.95

By using the traditional method of calculation, the weekly pivot levels for gold are presented as follows:

Central Pivot Point – $1,073.17
R1 – $1,100.13
R2 – $1,115.77
R3 – $1,142.73

S1 – $1,057.53
S2 – $1,030.57
S3 – $1,014.93