Black Friday Sale! Save huge on InvestingProGet up to 60% off

Gold Futures Settled At 1249.7 On Wednesday

Published 03/23/2017, 01:17 AM
Updated 04/03/2024, 10:12 AM
XAU/USD
-
XAG/USD
-
US500
-
GC
-
SI
-
1YMZ24
-

Gold futures finished the session a hair under 1250.0 an ounce Wednesday settling at 1249.7. Today’s settle puts the yellow metal up $19.70 for the week so far and the rally can be mostly attributed to safe haven buying in my opinion. S&P and Dow futures have suffered their worst weekly losses of 2017 this week, with technicians warning of a downside breakout for both indexes on the charts.

The reason for the recent weakness stems from increased investor sentiment of the President’s healthcare law failing passage in both the House and Senate. The failure to repeal and replace Obamacare would raise eyebrows on other expected pieces of legislation regarding corporate tax and other pro business initiatives that some investors have already priced in.

The continuation rally that started prior to the Fed meeting in gold continues to need to be fed by risk off sentiment in stocks, amid geo-political events and global economic uncertainties going forward. Given the uneasiness and unpredictability of the current administration in Washington, that without a return to previous all-time highs in equities, that any future dips in gold and silver going forward will be seen as buying opportunities.

Technically, support for April gold comes in for the remainder of the week at 1243.8 and with a close under, next support sits at 1220.3. Resistance is up at 1257.3, and then 1264.9. A close over here sets up 1288.0 as the next target to the upside.

Latest comments

Loading next article…
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.