Gold trading outlook: futures advance to fresh 1-week highs in quiet trade

On Friday gold for delivery in August traded within the range of $1,323.00-$1,346.95. Futures closed at $1,339.00, rising 1.56% compared to Thursday’s close. It has been the 133rd gain in the past 285 trading days and also the steepest one since June 24th, when the metal advanced 4.66%. The daily high has been the highest level since June 24th, when a high of $1,362.45 was registered. In weekly terms, gold added 1.44% to its value during the past week. It has been the 15th gain in the past 26 weeks and also a fifth consecutive one. The commodity has gained 2.55% so far during the current month, after advancing 8.71% in June. The latter has been the best monthly performance since February, when the metal appreciated 10.52%.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in August were gaining 0.98% on Monday to trade at $1,352.15 per troy ounce. The precious metal went up as high as $1,360.15 during mid-Asian trade, while the current daily low was at $1,338.85 per troy ounce, recorded during the early phase of the Asian trading session.

The US Dollar Index, a gauge reflecting the relative strength of the greenback against a basket of 6 other major currencies, was edging up 0.15% on the day at a level of 95.86, after climbing as high as 95.96 earlier. The index has dropped 0.35% so far during the current month, following a 0.33% gain in June.

The yellow metal enjoyed a solid support in the last several trading days, as expectations of further policy tightening by the Federal Reserve in the upcoming months eased amid the overall uncertainty following the UK vote on EU membership.

CMEs Fed Watch tool revealed market players saw a 0% chance of a rate hike occurring at the Feds policy meeting in July and a 3% chance of a reduction in the target range for the federal funds rate.

Meanwhile, silver futures for delivery in September were gaining 3.50% on the day to trade at $20.273 per troy ounce, after going up as high as $21.207 a troy ounce during the mid phase of the Asian trading session. The latter has been silver’s highest price level since July 13th 2014, when a high of $21.525 a troy ounce was recorded.

Daily, Weekly and Monthly Pivot Levels

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

Central Pivot Point – $1,336.32
R1 – $1,349.63
R2 – $1,360.27
R3 – $1,373.58

S1 – $1,325.68
S2 – $1,312.37
S3 – $1,301.73

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

Central Pivot Point – $1,331.60
R1 – $1,351.60
R2 – $1.364.20
R3 – $1,384.20

S1 – $1,319.00
S2 – $1,299.00
S3 – $1,286.40

In monthly terms, for the yellow metal we have the following pivots:

Central Pivot Point – $1,297.02
R1 – $1,386.03
R2 – $1,451.47
R3 – $1,540.48

S1 – $1,231.58
S2 – $1,142.57
S3 – $1,077.13