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Gold inches up yet may face downside pressure, platinum touches record high
The shiny metal recorded a weekly gain of nearly 0.50% the previous week, yet it stopped its rise after hitting resistance at $1668 an ounce, which represents SMA 50 on the weekly basis, where a closing above $1663.16, which represents SMA 200 on the daily charts, helped the price to remain firm today.
The yellow metal is currently trading around $1670.00 after touching a high of $1673.12 and a low of $1665.03, where the trading range for today is expected among the key support at $1625.00 and key resistance now at $1695.00.
Although the non-farm payrolls report released last week showed a modest increase in jobs to 157,000 in Jan., but the previous two months readings were revised up to 196,000 and 247,000, while in China services industries expanded at its fastest growth pace in six months.
In general, gold is trading in narrow ranges since Dec., between a low of $1625.82 and a high of $1695.88, as it failed to attract demand amid investor’s strong buying to shares after the improvement seen recently in the sentiment.
Yet, yen-priced bullions rose to the highest level since May 2010 as the weak Japanese currency increased demand on the metal.
On the other hand, platinum surged to the highest level in four years to touch a high of $1705.75 on Friday with the improvement in sentiment which reinforced expectations of stronger demand on the metal which is used as auto catalyst and in jewelry.
Palladium also climbed to a high of $759.8, the highest since September 2011, yet it retreated to trade around $755.00.
In the FX market, the dollar rebounded against a basket of major currencies as indicated by the dollar index which is currently hovering around 79.23, compared with the day’s opening of 79.16.
Crude oil for March`s delivery inched down to $97.45 after opening at $97.69.