Talking Points:

Gold price picked up lightly today amid thin markets before the U.S. Thanksgiving holidays. Overnight, gold descended near the 1067.58 support level as solid US data enhanced the chances of an early interest rate hike. Durable goods orders, personal income, new home sales were positive and initial jobless claims stayed near 40 year low.

Today could be a 7th session of sideways trading in gold. Gold holdings by exchange-traded funds have continuously dropped at a slow pace, with the latest weekly drop at 0.7 percent by November 25.

Oil price held gains as Baker Hughes Inc recorded the number of U.S. rigs dropped by 9 – bringing it to the lowest number since June 2010 and a 12th weekly decline in 13 consecutive weeks. Overnight, smaller inventory data from the Department of Energy eased some downward pressure from the previous report by API.

National crude inventories and Cushing build were both lower than forecasts and API’s number, although Cushing showed a larger build than expected, which remains a concern that hinders the upside of prices.

Copper price on COMEX jumped 4 percent during the Asian morning together with other base metals as China regulators were said to consider a probe into short-selling in the local market. Copper quoted on Shanghai Future Exchange also rose 4 percent. However this knee-jerk reaction may fade quickly given there is no sign that copper pain will be over soon.

Bloomberg reported that the industry group China Nonferrous Metals Industry Association also asked the National Development and Reform Commission to buy nickel, aluminum and other metals.

GOLD TECHNICAL ANALYSIS – Gold price did not manage to break through 1081.19 resistance level yesterday, as we expected. Instead, prices reversed down to the 1067.58 support level, followed by sideways trading today. Gold may remain range-bound for a while until the next macro event risk emerges. Day traders may test out this range for a quick trade.