© Dukascopy Bank SA
"When you look across the board, there's just a little bit of geopolitical risk coming back into the market."
- Ayers Alliance Securities (based on Bloomberg)
Pair's Outlook
Gold prices have been rising in the morning on January 4, the first working day after a long holiday. Both market volatility and trading volume are highly likely to increase above pre-Christmas levels soon, meaning price movements can become less predictable. In case the US statistics disappoints on Monday, then we should see the bullion consolidating above monthly/weekly PP at 1,065. This fact will therefore expose the 20-day SMA at 1,068, which is followed by the Nov-Dec downtrend at 1,075.
Traders' Sentiment
Since Thursday of the previous week we have not seen any changes to the SWFX market sentiment with respect to the yellow metal. At the moment around 56% of all traders are still bullish on gold, while 44% of them see the bullion lower.
© Dukascopy Bank SA