On Tuesday (in GMT terms) gold for delivery in December traded within the range of $1,325.5-$1,357.2. Futures closed at $1,354.0, rising 2.06% compared to Friday’s close. It has been the 158th gain in the past 331 trading days, a third consecutive one and also the steepest one since June 24th. The daily high has been a level unseen since August 19th, when a high of $1,357.9 was recorded. The precious metal has increased its advance to 3.25% so far during the current month, after losing 3.40% in August.
On the Comex division of the New York Mercantile Exchange, gold futures for delivery in December were edging down 0.12% on Wednesday to trade at $1,352.4 per troy ounce. The precious metal went up as high as $1,357.6 during mid-Asian trade, while the current daily low was at $1,351.6 per troy ounce, recorded during the mid phase of the European trading session.
The US Dollar Index, a gauge reflecting the relative strength of the greenback against a basket of 6 other major currencies, was inching down a mere 0.01% on the day at a level of 94.81, after going down as low as 94.68 earlier. The latter has been the lowest level for this index since August 26th. The gauge has extended its drop to 1.25% so far in September, following a 0.54% advance in August.
Gold extended its string of gains on Tuesday, following a disappointing report by the Institute for Supply Management (ISM). Figures showed that growth in US sector of services slowed down to its lowest level since February 2010. The respective Non-Manufacturing Purchasing Managers Index tumbled to a reading of 51.4 in August from 55.5 in July, while falling well short of market consensus (55.0). The gauges of business activity, new orders and employment conditions all decelerated last month, according to the ISM.
This report comes two business days after the Bureau of Labor Statistics reported US non-farm employers added 151 000 job positions in August, a figure which fell short of market expectations (180 000) as well. It has been the lowest job growth in four months, after in July a revised up 275 000 new jobs were added. At the same time, the rate of unemployment in the country remained at 4.9% for a third straight month in August, missing expectations of a drop to 4.8%.
These soft data points curbed expectations that a rate hike by the Fed may take place as early as September.
According to CME’s FedWatch Tool, as of September 6th, market players saw a 15.0% chance of a rate hike occurring at the Federal Reserve’s policy meeting in September, down from 21.0% in the prior two business days, and an 18.5% chance of a hike in November, down from 25.9% in the preceding day. As far as the December meeting is concerned, the probability of such a move was seen at 45.7% on September 6th, down from 50.6% in the preceding business day.
Meanwhile, silver futures for delivery in December were edging down 0.53% on the day to trade at $20.032 per troy ounce, after going down as low as $19.975 a troy ounce during the early phase of the European trading session.
Daily, Weekly and Monthly Pivot Levels
By employing the Camarilla calculation method, the daily levels of importance for gold are presented as follows:
R1 – $1,356.9
R2 – $1,359.8
R3 (Range Resistance – Sell) – $1,362.7
R4 (Long Breakout) – $1,371.4
R5 (Breakout Target 1) – $1,381.6
R6 (Breakout Target 2) – $1,386.4
S1 – $1,351.1
S2 – $1,348.2
S3 (Range Support – Buy) – $1,345.3
S4 (Short Breakout) – $1,336.6
S5 (Breakout Target 1) – $1,326.4
S6 (Breakout Target 2) – $1,321.6
By using the traditional method of calculation, the weekly levels of importance for gold are presented as follows:
Central Pivot Point – $1,322.1
R1 – $1,338.6
R2 – $1,350.6
R3 – $1,367.1
R4 – $1,383.7
S1 – $1,310.1
S2 – $1,293.6
S3 – $1,281.6
S4 – $1,269.7
In monthly terms, for the yellow metal we have the following pivots:
Central Pivot Point – $1,330.8
R1 – $1,354.8
R2 – $1,398.1
R3 – $1,422.1
R4 – $1,446.0
S1 – $1,287.5
S2 – $1,263.5
S3 – $1,220.2
S4 – $1,176.8
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