Gold futures were hemmed into a tight range in the US on Wednesday morning while options traders attempt to keep prices in check.
Gold for February delivery on the Comex division of the New York Mercantile Exchange was last down $1.20 at $1,072.90 per ounce. Trade has been between $1,069.00 and $1,074.90.
“Obviously someone or some entity is sitting upon gold at the $1,080 level and at the 1,000 euro per ounce level and we suspect that that is year-end options related,” Dennis Gartman, editor of the Gartman Letter, said.
“We fear some possible attack upon gold given the less-than-materially liquid conditions that prevail but we are all the more impressed with the support that has been so evident at the $1,045-1,055 level and so we shall sit tight, trusting that nothing untoward shall develop,” he added.
In technicals, gold’s recent double-high in the $1,089 area should act as resistance. Support is at the recent low of $1,047, Scotiabank noted.
“This week should continue to bring us relatively quiet trading conditions but the thin liquidity could generate some rather wide price swings,” INTL FCStone’s Edward Meir said.
“We have to suspect that the path of least resistance for gold remains lower still, exacerbated by a stronger dollar and what seems to be a never-ending decline in crude oil, undoubtedly a key bearish trigger for commodities as a whole,” he added.
Meanwhile, the data agenda picks up today. US figures include core durable goods orders, the core PCE price index, durable goods orders, personal spending, personal income, new home sales, revised UoM consumer sentiment and revised UoM inflation expectations.
In wider markets, the dollar was 0.29 percent stronger at 1.0924 against the euro while Germany’s DAX and France’s CAC-40 were up 1.81 percent and 2.01 percent respectively.
As for the other precious metals, Comex silver for March delivery was down 14 cents at $14.30 per ounce. Trade has ranged from $14.23 to $14.320.
Platinum for January delivery on the Nymex were up $2.30 at $875.30 per ounce while the most actively traded palladium contract was at $557.00 per ounce, up $2.35.
