© Dukascopy Bank SA
|
Moreover, new home sales and personal spending in the country advanced less than predicted by 0.7% and 0.2% in October, respectively. On the other hand, durable goods orders including transportation items surged 0.4%, despite negative expectations of the market.
According to FuturePath Trading LLC, the fact that Russia is buying more gold instead of diversifying into another currency or buying more dollars is a big positive. After the US Fed officials stated that the inflation in the country should not be a concern at the moment on Thursday, the yellow metal dropped to the lowest levels in the period. However, Friday came with gold-positive news—China cut their benchmark interest rates to support nation's economy—after that gold reached the highest price in three weeks.
Gold to remain volatile as more fundamentals to be published on Friday
The price of Gold is likely to stay vulnerable to any important fundamental news at the end of this week. As expected, Friday will deliver a portion of statistical data from many regions of the world. Besides American statistics, the fresh data will include consumer confidence in Britain, retail sales in Germany, unemployment rate and inflation in the Eurozone, as well as Canadian gross domestic product data for October.{ATTACHMENT}
XAU/USD to decrease trading range by the end of 2014
The long-term outlook for the XAU/USD cross remains bearish, taking into account the recent US dollar's bullish tendency across the market. It seems that the Gold is entering a descending triangle pattern against the Buck, meaning that trading range o the pair is likely to decrease. From above the long-term downtrend line is located around $1,220, while a support in face of 2014 low is placed at $1,131. In the first week of December we can expect the Gold to rise up to the trend-line; however, later we would suggest the metal to decline, especially if more optimistic fundamental news are released across the world.Daily chart
{ATTACHMENT}
From the perspective of hourly chart, it should be noticed the Gold has been trading sideways since the beginning of this week. Some short-term downturns took place on Tuesday and today's morning, when the metal dropped down to $1,186 but was able to recover back to the major level. The Gold's cross with American dollar is well-supported by the 200-period SMA and daily S1 around $1,194. Therefore, we would not expect it to decline in the nearest future. As a daily goal, the Gold may increase in its value up to daily pivot point around $1,198 on Thursday.
Hourly chart
{ATTACHMENT}