Friday, March 28, 2014

Weekly Gold

June Gold settles 1294.8, down $39.90 for the week ended Friday March 28th

Gold futures remained below $1,300 an ounce on Friday, unable to trim this week's significant losses despite a slightly weaker U.S. dollar. June gold fell 50 cents to settle at $1,294.30 an ounce on the Comex division of the New York Mercantile Exchange. The front-month contract was down more than 3 percent this week. The precious metal lost its luster last week when Federal Reserve Chair Janet Yellen suggested that hikes may be in the cards about a year from now. Today's encouraging U.S. consumer spending data may give the Fed's more hawkish members further reason to advocate for tightening monetary policy sooner than expected. New government figures showed consumer spending rose 0.3 percent in February, suggesting that the mid-winter slowdown was weather-related and temporary.

Looking ahead to economic news next week, analysts said they'll keep an eye out for the European Central Bank meeting on Thursday and Friday's March nonfarm payrolls report from the U.S. Labor Department. Currency analysts said there's been some discussion in the markets that the ECB will act in some dovish way, given that ECB President Mario Draghi has expressed concern that the recent strength in the euro is becoming a risk to growth and the inflation targets. Worries about deflation cropping up in the European Union increased after weak consumer price index readings in Spain, although German CPI data came in about as expected. Spanish retail sales were soft and France reported a fall in consumer spending. Friday the U.S. Labor Department is slated to release its March nonfarm payrolls report, which will keep gold-market traders on alert. Pre report trade estimates are looking for a gain of 195,000 jobs with the unemployment rate falling to 6.6 percent. Technicals for next week come in as follows for June Gold and May Silver. For June Gold, support sits at 1275.4 and below here at 1256.0. Support sits up at 1324.9 and above there at 1355.0. For May Silver support is down first at 19.47, and below there at 19.15. Resistance is up at 20.21 and above there at 21.05.


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