Gold trading outlook: futures retreat on profit taking, terrorist activity in Brussels still weighs on sentiment

On Tuesday gold for delivery in April traded within the range of $1,243.80-$1,252.40. Futures closed at $1,248.80, rising 0.40% on a daily basis. It has been the 19th gain in the past 37 trading days. The daily low has been a higher-low test of the low from March 21st. Gold has erased its earlier advance during the current month, inching down 0.03%.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in April were losing 1.15% on Wednesday to trade at $1,234.50 per troy ounce. The precious metal went up as high as $1,249.80 during the early phase of the Asian trading session, while the current daily low was at $1,231.70 per troy ounce, recorded during early European trade.

Demand for safe haven assets such as gold was bolstered yesterday following the acts of terror in Brussels. On Tuesday morning explosions shattered the departure hall of the citys airport, as at least 26 people lost their lives and 35 others were injured. Moments later, another blast occurred at a metro station in the city.

Today gold trading may be influenced by the monthly report on US new home sales. Sales of new single-family homes probably rose 3.1% to the seasonally adjusted annual rate of 510 000 in February, according to market expectations, from 494 000 reported in January. The latter has been the lowest sales level since October 2015, when a figure of 480 000 was reported. In case the index showed a better-than-anticipated performance, this would strongly support demand for the US dollar and would have a strong bearish effect on gold, respectively. The US Census Bureau is to release the official figure at 14:00 GMT.

Meanwhile, silver futures for delivery in May were retreating 1.42% on the day to trade at $15.665 per troy ounce, after going down as low as $15.605 a troy ounce during the early phase of the European trading session. It has been the lowest price level since March 17th, when silver recorded a daily low of $15.565 per troy ounce.

Daily and Weekly Pivot Levels

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

Central Pivot Point – $1,248.33
R1 – $1,252.87
R2 – $1,256.93
R3 – $1,261.47

S1 – $1,244.27
S2 – $1,239.73
S3 – $1,235.67

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

Central Pivot Point – $1,250.63
R1 – $1,273.27
R2 – $1,292.73
R3 – $1,315.37

S1 – $1,231.17
S2 – $1,208.53
S3 – $1,189.07