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Weekly Gold Report


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Gold and Silver finished the week mixed as December gold settled 1274.9 down $9.90, while December silver settled at 16.79 up 11.5 cents for the week.Gold slid to two-month lows on Friday before bouncing back to post modest gains for the day. An upbeat reading of the U.S. unemployment rate and wage growth last month supported expectations for a further U.S. interest rate hike in December, pushing the dollar and Treasury yields higher.Traders looked past data showing the first drop in U.S. employment in seven years as other indicators suggested the jobs market was improving.The Department of Labor said that the United State lost 33 K jobs last month marking the first contraction in the labor market since September 2010. The average trade guess prior to the report was for a gain of 90 K jobs.Gold prices have fallen more than 1 percent this week and are facing their fourth straight week of declines, the metal's longest run of weekly losses this year.Investor interest in gold has been soft. Holdings of the world's largest gold-backed exchange-traded fund, Spider Gold Shares, have fallen 13.6 tonnes so far this week, their first weekly outflow in nine weeks and the largest since late July. Demand for physical gold in India improved slightly this week because of a correction in local prices, but restrictions on the industry and increased smuggling took the sheen off the gold market heading into the peak festival season.

Technically gold and silver have erased early daily losses that pushed prices to two-month lows, in late-morning trading Friday. The greenback has backed down from its session high and the U.S. stock indexes are also weakening, which has prompted metals traders to do some short-covering in the futures markets, and a bit of bargain buying in the cash markets, heading into the weekend. December gold made a weekly low at 1262.8, while silver probed all the way down to 1634.5 following this mornings non farm payroll release. The move in silver looks like an intra-day reversal as it finished over 40 cents from the daily low while posting a higher close for the week. There was some noise about another potential missile launch this weekend by North Korea so in my view there was definitely some safe haven buying into the weekend. My technical swing numbers for next week come in as follows. For December gold, support is down at 1263.4 and with a close below 1252.0 is next. Resistance is up at 1285.6 and with a close over 1296.4 is next. For December silver support is down first at 16.45 and below there at 16.11. Resistance is up at 17.02 and then up at 17.26.

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About the author


Sean Lusk is a registered commodity broker and Director of the Commercial Hedging Division of Walsh Trading in Chicago. Sean began in the business as a runner on the trading floor during summer breaks from college in 1993. Upon his graduation from Southern Illinois University at Carbondale in 1996, Sean began his career on the trading floor of the Chicago Mercantile Exchange (CME). Overseeing billions of dollars of transactions working as a clerk in the Eurodollar pit, Sean took the next step and became a floor broker and member of the CME in 2003. He handled customer orders for banks and investment houses from all over the world from inside the Libor pit at the CME.

Now, at Walsh Trading, Sean utilizes his experience in the marketplace and his professional client service skills to aid and assist customers in their trading endeavors.  

He writes daily and weekly commentaries focusing on both the Precious Metals and Agricultural Markets along with related market activity.

Sean has been quoted in various media outlets discussing futures markets. 

These include:

 

  • Futures Magazine
  • Reuters
  • Forbes
  • Kitco
  • Nikkei Press
  • CCTV.com

 

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