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Precious Metal Technicals: 12/1

by on December 1, 2013 7:46 pm BST
 

Gold closed last week higher as physical demand from Asia boosted spot prices. Gold futures are looking to form support after trading in a tight range the last several sessions, between $1,235 and $1,258 per ounce. Institutional sentiment is still bearish, but little price spikes are common due to key data and sporadic bullion demand.

If gold can close above $1,255 per ounce, a short-term upside target to $1,268 (the 20 EMA) will be in play. However, if gold trades lower and closed below $1,235, price action could drift to $1,211 per ounce. Look for a break out of the recent mundane, range bound trade during the data rich week.

1D Chart of GC

1D Chart of GC

Silver has finally found support at $19.64 per ounce after breaking through the symmetrical triangle, and subsequently $20 per pounce. Price action was able to close the week back above $20 per ounce, but silver is not out of the woods yet.

Look for resistance at $20.22, and an upside target of $20.51 given an upside breakout. Support will continue to lie at $19.64 until proven otherwise. If support is broken, $19 per ounce is the nearest price target.

1D Chart of SI

1D Chart of SI

Platinum is trading according to plan after breaking and closing below trend line support. In last week’s precious metal technical outlook, “a close below these levels with signal further downward movement to $1,360 and potentially $1,330 per ounce.” Platinum seen a low of $1,351 per ounce and closing at $1,362 per ounce. The target of $1,330 is still in play with all things consider equal going into next week.

Precious metals will see some action during this week’s multiple key reports. The US reports ISM manufacturing data on Monday, ADP non-farm payrolls, trade balance and new home sales on Wednesday, prelim GDP and unemployment claims on Thursday, and unemployment rate and non-farm payrolls on Friday. Thursday also holds the much speculated ECB rate decision and press conference.