Gold trading outlook: futures trade slightly lower, silver futures at lows unseen since 2009

On Friday gold for delivery in February traded within the range of $1,064.40-$1,079.40. Futures closed at $1,076.90, rising 0.35% on a daily basis, while marking their second gain in the past trading week. The daily low has been the lowest price level since December 4th, when the metal fell as low as $1,058.70. In weekly terms, gold lost 0.70% of its value last week, after gaining 2.68% in the week ended on December 6th. On the other hand, the commodity has advanced 0.59% so far during the current month.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in February were losing 0.70% on Monday to trade at $1,068.20 per troy ounce. The precious metal went down as low as $1,065.00 earlier today, overcoming the lower range breakout level. Immediate support may be received at the low from December 11th ($1,064.40) and after that – at the 11.40% Fibonacci level ($1,061.94), which reflects the descent from October 28th high to December 3rd low. Resistance may be encountered at the 4-hourly 100-period EMA ($1,074.60) and then at the 23.60% Fibonacci level ($1,078.63).

On Friday silver for delivery in March traded within the range of $13.750-$14.135. Futures closed at $13.884, plummeting 1.60% on a daily basis, or the most since November 9th, when a 2.02% slump was registered. In weekly terms, silver plunged 4.43% last week, marking its seventh week of decline in the past eight weeks and also the sharpest one since the week ended on November 8th. The commodity has lost 2.21% of its value so far during the current month, following a 9.79% drop in November. The latter has been the worst monthly performance since September 2014.

Silver futures were down 0.93% during early US session to trade at $13.755 per troy ounce. The metal went down as low as $13.635 a troy ounce earlier, which has been the lowest price level since August 19th 2009. Back then a troy ounce of silver was valued as low as $13.610. Resistance may be encountered at the hourly 21-period EMA ($13.841), while support may be received at the August 19th 2009 low.

The dollar index, which tracks the relative strength of the US dollar against a basket of six other major currencies, was down 0.11% on the day to trade at 97.50, which is also the current daily low. It is set to register a second consecutive trading day of decline.

Daily and Weekly Pivot Levels (Gold)

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

R1 – $1,078.28
R2 – $1,079.65
R3 (range resistance) – $1,081.03
R4 (range breakout) – $1,085.15

S1 – $1,075.53
S2 – $1,074.15
S3 (range support) – $1,072.78
S4 (range breakout) – $1,068.65

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

Central Pivot Point – $1,075.93
R1 – $1,087.47
R2 – $1,098.03
R3 – $1,109.57

S1 – $1,065.37
S2 – $1,053.83
S3 – $1,043.27

Daily and Weekly Pivot Levels (Silver)

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

R1 – $13.919
R2 – $13.955
R3 (range resistance) – $13.990
R4 (range breakout) – $14.096

S1 – $13.849
S2 – $13.813
S3 (range support) – $13.778
S4 (range breakout) – $13.672

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

Central Pivot Point – $14.091
R1 – $14.433
R2 – $14.981
R3 – $15.323

S1 – $13.543
S2 – $13.201
S3 – $12.653