With the Martin Luther King Jr. Holiday weekend quickly approaching, values are up across the board. U.S. stocks are extending weekly gains, while gold and the Greenback are also putting in solid sessions. At the halfway point of the American trading day, the DJIA DOW (+30), S&P 500 SPX (+8), and NASDAQ (+5) are modestly in the green.

The lead story for today’s U.S. session has been the sub-par performance of the University of Michigan Consumer Sentiment Index (Jan.). The figure came in at 99.1, below expectations (99.3) and the previous release (99.3). Although considered to be a primary metric by many analysts, the markets are ignoring the disappointing figure. Stocks continue to show strength with only modest gains in safe-havens, led by gold.

February Gold Futures Rally Ahead Of MLK Weekend

It is always interesting to watch the action in gold ahead of a weekend or holiday break. Next Monday features a full-blown market closure for U.S. equities and an early-halt for commodity futures.

Here are the key levels to watch for February gold futures:

• Resistance(1): 38% Macro Wave Retracement, 1560.2
• Support(1): Bollinger MP, 1531.4
• Support(2): Daily SMA, 1515.8

Overview: Over the past seven sessions, February gold futures have consolidated in the GAP area (1556.6-1562.3) that developed following this month’s Iran/U.S. military exchange. Thus far, the GAP has proved to be formidable support.

At press time (about 1:00 PM EST), it looks like gold is fighting to get back into bullish territory above the 38% Macro Wave Retracement (1560.2). This comes as little surprise going into a three-day weekend. With so many geopolitical risks on the table, it appears that more than one institutional trader has bought some insurance against the unknown.