Daily Gold Update

Source: Melanie Lovatt, BridgeNews

London— COMEX Dec gold futures are expected to open unchanged at the 0820 ET start of trade, with Dec silver also seen flat ahead of its 0825 ET open. The session in Europe was quiet and provided little direction for the New York open, with holidays in India and Hong Kong contributing to subdued overnight trading.

Brokers said that with the dollar now shifting mostly sideways against the euro and other currencies, it had taken some impetus out of gold which is now searching for fresh direction. However, they warned that any resurgence of dollar strength could hammer gold lower again, while a dollar pullback could push it higher. They said that the session is unlikely to be inspiring, with one broker pegging the day's support at $274.50 per ounce, with lesser support at $275.50, and resistance levels at $278 and more significantly, at $279.

In Europe, silver followed gold's lead and crept sideways just above the $4.85 level, while platinum and palladium also kept to recent ranges in low key conditions. On Friday COMEX gold warehouse stocks climbed 14,286 ounces to 1,918,080 ounces, while silver stocks fell 592,722 ounces to 99,551,754 ounces.