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Preholiday Volume and Subdued Trading Characterizes Gold Pricing

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The best way to characterize trading activity today is quiet. In honor of Good Friday tomorrow the precious metals markets will be closed and we are observing pre-holiday volume and range decline. As of 4:40 PM Eastern Standard Time gold futures are trading up $0.90, with the most active June contract fixed at $1277.70. The daily trading range of $6.70 was also compressed with an intraday high of $1279, and low of $1273 per troy ounce.

This quiet however comes after the stormy and tumultuous week which resulted in a swift decline in gold pricing. On Monday, April 15th gold pricing broke below its 100-day moving average for the first time since November 27th of last year. Although pricing managed to close just above it, Monday’s move was a precursor to a dramatic selloff that occurred on Tuesday of this week. Selling pressure on Tuesday was extremely strong, as market participants witnessed gold open at $1290 and close at $1277.60, the lowest price point gold has traded to since December 26th, 2018.

Technically speaking gold is at a critical price point. Currently there is a potential for gold to find support at the .38% Fibonacci retracement level which is fixed at $1275 per ounce. If gold cannot hold that price point it most likely will trade to the next level which is the 50% Fibonacci retracement at $1245. Resistance resides just at the 100 day moving average which is currently at $1299.

Palladium Prices Surge Once Again

On March 21st, palladium futures opened at $1564.70, just a few dollars shy of its all-time record high which occurred the day before at $1570 per ounce. By the close it had been cut down to $1517 per ounce, a precursor to what was to come in the following days. By March 28th prices have dropped substantially following two concurrent days in which palladium prices lost over $100 each day chopping it to just $1309 per ounce. This week began with palladium trading at approximately $1334, and on Wednesday as well as today began to trade sharply higher. Over the last two days palladium pricing has gained almost $70. This includes today’s gains of $30, a +2.17% gain. Palladium futures are go into the holiday weekend with a price of $1408.60 per troy ounce.

Platinum prices also jumped today gaining 1.81%, or $16.10, resulting in platinum futures closing above $900 for the first time this week, and settling at $907.50.Both metals are primarily mined in Russia and South Africa, with the supply chain mutually controlled almost exclusively by Russia.

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Wishing you as always, good trading,

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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