As of 3:20 PM EST, the most active Comex contract for February 2021 is set at $ 1883.40 after taking into account $ 3.00 (0.16%) in earnings. While on the surface, this could be interpreted as traders offering the highest precious metal, in the case of the current stock, it was 100% due to a weak US dollar. The US dollar traded under pressure today fell 4/10 per cent and, after taking into account the current fall of 37 points, is currently set at 89,905. Simple math tells us that the 0.40% drop in the dollar is a little more than double the 0.16% gain in gold futures.
The same result in spot gold can be seen when viewing the KGX (Kitco Gold Index), which shows that from 15:41 hours the spot gold was set at $ 1878.40, which is a net profit of $ 5.50 or + 0.29%. After a more detailed inspection, we can see that traders contributed a fractional selling pressure of about $ 1.20 per ounce. It was the weakness of the dollar that contributed $ 6.70 and resulted in a net profit today of $ 5.50.
Much of the current net changes in financial markets were linked to confusion, as Senator Mitch McConnell’s leader blocked Senator Chuck Schumer’s effort to increase direct payments from the new round of fiscal stimulus from $ 600 to $ 2,000. Yesterday, the House passed a related bill to address the amount of incentives that would be allocated through direct payments as part of the fiscal stimulus package signed Sunday by President Trump.
On a technical basis, support for gold pricing over the past three days has been defined by intraday lows that have come very close to the 50-day moving average, which is currently set at 1870, $ 90. Below the 50-day moving average, the next level of support occurs at $ 1860 and is based on a series of lows that took place on December 22nd and 23rd.
The resistance of the last five trading days has been defined by the moving average of 100 gold days currently set at $ 1904.50. Over the past seven days of trading, gold has traded up to an intraday high, with only the 100-day moving average twice. But both attempts were unable to keep a price above the 100-day moving average, let alone close above that price point.
Another important factor that has exerted pressure on gold prices recently has been a strong sense of risk in the market in which market participants favored US stocks to gain potential returns rather than a head-to-head flight. to the appeal of safe gold. There is then the question of Bitcoin’s historic rise in all-time record prices capturing some of the capital that would have flowed in gold. Bitcoin futures (BTC F21) listed on the Chicago Mercantile Exchange have earned $ 280 today and are currently set at $ 27,370 per currency. This is the future with the highest price recorded for a single currency. Over the weekend, the price of Bitcoin gained more than $ 3,000, causing a breach since the opening closed Friday and Monday morning.
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