Gold Higher On Weak Dollar While Palladium Hits All Time High
Gold settled higher Friday finishing the week in positive territory for the fifth week in a row. The U.S. dollar continues to be the main source of support for the metal as the dollar's fall also pushed the euro to a three year high. Inflation data came out this morning in line with projections, however, the Core Inflation number was slightly higher than expected, a potential sign of increasing inflation further supporting Gold as an inflation hedge. With the Martin Luther King Jr. holiday and limited economics releases next week, it is projected to be a quiet week.
March silver futuressettled up to $16.995 a troy ounce, April platinum futuresrose to $996.20 a troy ounce, while March copper futures settled down to $3.2185 per pound. March Palladium futures had quite a day finishing at an all time high of $1,105.35 a troy ounce as supply is expected to continue to tighten.
For February gold, an open in the next session above the pivot of $1,329.80 would show near term resistance at $1,338.90 while a breakout above this level would see longer term resistance at $1,342.80. An open below the pivot would have near term support down at $1,325.90, and a sell off below this would show longer term support at $1,316.40.
Bullion on Bullion.
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Michael Bullion, CAIA
Senior Technical Analyst
Walsh Trading, Inc.
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.