Gold Fundamental Analysis Jan. 17, 2012, Forecast
Remembering that the US markets were closed on Monday so volume was very light. Gold futures for February delivery rose $12.70, or 0.8%, to $1,643.50 an ounce in electronic trade on the Comex division of the New York Mercantile Exchange, where floor trading was closed due to the Martin Luther King Jr. holiday. After the Standard & Poors downgraded multiple euro zone nations and the European Financial Stability Fund.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1643.85 a troy ounce during late U.S. trade advancing 0.80%. It earlier hit a high of USD1647.45 climbing 1.05%. Gold futures were likely to find support at USD1625.85 a troy ounce, Friday’s low and technical resistance exists at USD1662.85, the high of January 12.
Weakness in the U.S. dollar usually works to lift precious metal prices. The dollar index, which tracks the performance of the USD versus a basket of six other major currencies, gave back 0.08% to trade at 81.66. When US markets open tomorrow, I believe we will see gold continue to rise as investors seek a safe-haven. The dollar is set to rally, it just needs a push in the right direction.
News of gold hording by China, is likewise seen as a perfect ingredient to push the prices of the yellow metal upward. According to trade data, in the month of November, China imported 102.8 metric tonnes, worth to be some $5.4 billion.
Combined with the uncertainty over the world’s fiscal situation this will create a parallel pandemonium to acquire more of the gold metal, ultimately fuelling prices to go up in the next few months.
Analysis and Recommendations:
Support and Resistance levels for tomorrow S:1628.20 1609.30 1593.40
R:1697.20 1664.10 1659.00
Buy on the dips
Originally posted here
