Gold Trading Futures Steady After Midweek Drop
After a drop on Wednesday, Thursday saw gold futures return to being steady in Europe.
Gold futures due in December were trading at $1,297.3 per troy ounce in New York on Thursday morning, up 0.03%. Prices were ranging from $1,292.9 to $1,298.6 per troy ounce. On Wednesday the contract had dropped 0.28% and it was down about 0.6% for the week.Lv Jie, an analyst at Cinda Futures Co. said, “Positive U.S. economic data is good for the dollar and bad for gold. Geopolitical concerns still exist for support but the longer-term downtrend is unchanged as the U.S. moves toward tighter monetary policy.”
Analysis suggests that if gold December futures manage to breach the first resistance level at $1,303.7 then the contract will probably continue up to test $1,310.4.
If the secondary resistance is broken then the price of gold will probably continue to advance to $1,315.7.
If the contract manages to breach the first key support at $1,291.7 it will probably keep sliding and test $1,286.4. When the second key support is broken then the trend will probably continue to the downside and may reach $1,279.7.