Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

June Gold Settles At 1174.5, Down $28.70

Published 05/03/2015, 03:18 AM
Updated 01/22/2024, 02:07 PM

Precious metals markets took it on the chin this week as better than expected data in the U.S. highlighted by a better than expected jobless claims release Thursday morning as the trigger for the sell -off. Gold futures plunged on Thursday 2.3 percent or $27.60 as jobless claims fell to a decade low prompting thoughts that the data dependent Federal Reserve would become hawkish. Last week’s commitment of traders report showed speculative and fund positions net long 115K contracts. I believe some of these net longs liquidated shortly following the jobless claims release. It’s possible that the rekindled rate hike talk and a short covering rally in the US dollar will combine to put more pressure on the gold market potentially taking it down to the 1150-1160 area in the near term. It will be key to see rises in volume and open interest as evidence of accumulation for the yellow metal as we have seen previously in November 2014 and March 2015, when gold prices touched down to 1130 and the 1150 level respectively.

Gold for June delivery today scaled an intra- day high of 1184.4 and a low of 1168.4 before slightly firming near the close. Gold hit its highest since early April at $1,215 earlier this week, but failed to hold that level after the Federal Reserve signaled on Wednesday that it sees the recent slowdown in the U.S. economy as transitory, not ruling out an interest rate rise this year. Strong data could shore up expectations the Fed is still on track to raise rates this year, most likely in the fall, which would lift the opportunity cost of holding non-yielding bullion while boosting the dollar. Holdings of the SPDR Gold Shares (ARCA:GLD), the world’s largest gold-backed exchange traded fund remained unchanged at 739.06 tons.

Weekly Swing #s GCM 15 May 4th through May 8th, 2015

Resistance #2- 1232.4
Resistance #1- 1203.4
Pivot #- 1195.9
Support #1- 1156.9
Support #2- 1172.8

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.