Gold Prices Continue to Hover Near 2-1/2 Week Highs
Gold prices continued to hover near two-and-a-half week highs on Friday, despite a mild rebound in the greenback as trading volumes were expected remain subdued ahead of the Christmas holiday. Comex gold futures were little changed at $1,271.30 a troy ounce by 03:00 a.m. ET (07:00 GMT), close to Thursday’s two-and-a-half week high of $1,272.50. The greenback found some support after data on Thursday showed that the U.S. economy grew 3.2% in the third quarter, which was a downward revision from the previous reading of 3.3%. It was still the fastest pace in more than two years. Gold is sensitive to moves in the dollar. Stronger dollar makes gold more expensive for holders of foreign currency.
UPDATE 2-Oil dips from highs, but OPEC’s cuts still support market
OPEC-led production cuts still support market. Oil prices on Friday dipped away from some of their highest levels since 2015, weighed down by rising U.S. output and the expected January re-opening of the Forties pipeline in the North Sea. Despite this, markets remained well supported by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia. Market liquidity was drying up on Friday as traders closed positions ahead of the upcoming Christmas and New Year breaks. Brent crude futures LCOc1 , the international benchmark for oil prices, were at $64.81 a barrel, down 19 cents, or 0.1 percent.
LME base metals consolidating; copper dips but still well supported
Base metals prices on the London Metal Exchange were mostly consolidating during morning trading on Friday December 22, the last trading day before Christmas. The three-month copper price dipped $28 per tonne this morning but remained well supported above $7,000 per tonne.
The three-month nickel price dipped $20 per tonne while lead also dipped slightly – but both metals remained range bound.
Aluminium and zinc prices were little changed this morning, supported by recent weakness to the dollar and end-of-year bullish sentiment.
MCX Gold last week took good recovery from its lower level and also unable to broke its lower trend line. For upcoming session it may continue with its bullish movement, if its price manages above the major resistance level of 28750 and after that it may go upside towards the next resistance level of its upper trend line which is near to its 28950 level. On lower side it has important support level of 28400 and after that 28200 will act as a next crucial support level.
Better strategy in MCX GOLD is to buy above 28700 for the target of 29100, with stop loss of 28100.
MCX Silver last week showed sideways to positive movement and closed near to its major resistance level of 38000 which is near to its 23.6% retracement level. For upcoming week if price maintains on higher level then it may continue with bull run and test next important resistance of 38800 levels i.e. near to its 38.2% retracement level. On downward side it has crucial support level of 37000 and price sustains below this level then it may give more bearish movement and test next vital support level of 36300.
Better strategy in MCX SILVER is to sell below 37300 for the target of 36300, with stop loss of 38500.
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