Gold futures prices are moderately higher and waiting another upside technical correction and short covering following recent selling pressure that on Monday drove prices to a nearly five-month low.Due to Pre-holiday trading atmosphere (the U.S. Thanksgiving holiday is on Thursday) Wednesday Market would expect to be quiet and also it’s a very busy day for U.S. economic data. That data could move the markets—especially if trading volumes are already thin. February gold was last up $9.40 at $1,251.10 an ounce. Spot gold was last quoted up $9.10 at $1251.50.
A heavy slate of U.S. economic data to be release Wednesday includes the weekly MBA mortgage applications survey, durable goods orders, weekly jobless claims, the Chicago Midwest manufacturing index, the Chicago Fed national activity index, the ISM Chicago business survey, the University of Michigan consumer sentiment index, leading economic indicators, and the weekly DOE liquid energy stocks report. Any of this data that is significantly outside of market expectations could move markets, especially as many traders have already out from the crowd in order to get a jump on the U.S. Thanksgiving holiday.
Technically, February gold futures bears still have the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to close above solid technical resistance at $1,275.00. Bears' next near-term downside breakout price objective is to hit closing price below solid technical support at $1,200.00. First resistance identified at this week’s high of $1,258.20 and then at $1,261.80. First support is at the overnight low of $1,241.00 and then at $1,230.00.
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