Gold steadier on Thursday, making a small gain into the US close
- Gold more stable on Thursday on mixed USD.
- US data was disappointing ahead of Fed meeting in Dec.
Spot gold has been trading in a more stable fashion on Thursday, closing slightly higher moving between $1,274.97 and $1,281.75 while the US dollar has also stuck to a more narrow range between 93.772 and 93.998.
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Markets have been consolidating the recent scantiness while volatility and uncertainty has, so some extent, been aiding the safe-haven metal in an otherwise broader bear trend established back in early September.
For Thursday, US data disappointed in the Philadelphia Fed’s manufacturing index falling to a reading of 22.7 in November, from 27.9 in October, a big miss that supported the bid on Gold ahead of December's interest rate decision. Data like that does not support the case for a hike, although one set of bad data is not going to prevent the Federal Reserve from going through with a December interest-rate hike, of which the market fully expects to happen.
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How did the US data perform today?
There was, however, some relief in U.S. weekly jobless claims that moved to a six-week high. Elsewhere, on the political front, markets need to wait for the Senate Finance Committee's vote on tax reform that the House of Representatives passed today and that is where things could all fall apart while senators have expressed serious misgivings over the cost and effect on the middle class.
Support comes in at $1275 (Thursday low 1$,274.97) with $1263 (200 DMA) just below $1265 (last week low) and $1260 below there. On a recovery, $1282 was recent resistance on Thursday before $1295. On the wide, $1,305.96 is the October monthly high.