Gold Ends Week With Decent Daily Gain

Despite the Middle East region calming down, with fears of an oil shortage abating, gold managed to close with a decent single-digit gain today. The mid-afternoon drop the metal went through in recent days proved to be absent today; instead, it ended up higher than its price at the finish of the pit session. Today's gain helped gold rack up another gain on the week: for this one, it put on $20.50 or 1.48%.

The metal began the pit session by rising from $1,404 to above $1,406. Fluctuating around that level, it sunk at 9:45 AM ET to $1,402 by 10:00. Interestingly, that drop was in anticipation of a comsumer-sentiment number that proved to be the best reading in three years. The whole report, though, showed sentiment in lower-income households dropping. This disconnect, gold picked up on: it rallied in the subsequent hour to its daily high of $1,412.80. Turning downwards just before 11:00, it fell in two stages to $1,404.

Rebounding, it got back up to $1,408 but further gains eluded it until it fell out of bed. After recovering, it jumped up to $1,410 before settling around $1,409. Despite a trip-down just before 4:00, and a blip-up above $1,410 later, it came in for its weekend rest at just below $1,410. As of the end of the week, the spot price was $1,409.60 for a gain of $7.50 on the day. The Kitco Gold Index attributed +$9.90 to predominant buying and -$2.40 to a strengthening greenback.

The metal's six-month chart, from Stockcharts.com, shows today's action mostly undoing yesterday's drop:



The chart still looks bullish, although the pause gold's made doesn't look like a pause that will refresh. Some reassurance has come from the fact that it was up even though Middle-East-related fears are starting to subside. The metal's still a fair bit away from its record high of $1,431.25, and current action suggests it won't make a new record soon.

As for the U.S. Dollar Index, it upended its recent intraday trading pattern by putting in a good early morning. Starting a rally at 77.115, it bobbled back at 8:40 but shook off that stumble and rose above 77.4 by 10:00. Then, itself affected by the sentiment-index number, it turned round and dropped in a decelerating slide down to 77.25. Its drop influenced gold's rise. Fluctuating around 77.27 during early and mid-afternoon, it fell a bit and ended the week at 77.22.

Its own six-month chart, also from Stockcharts.com, shows its recovery keeping it above the important 77.0 support level:



Today's candlestick was almost the same as yesterday's, indicating that the Index reversed yesterday's drop today. Its chart still looks bearish, but it avoided a further drop today which might have kick-started another sustained decline. The Index may muddle in the low 77s for some time.

As the week ends, gold's kept most of its gains. Its weekly gain streak is the best it has notched up since last fall. Gold looks toppy on a short-term basis, but its overall uptrend is still solid.

In closing, I'd like to thank you for stopping by and seeing what I've written (and pasted) here. Have a great weekend, especially if you're due for a thaw.