Analysis and Recommendations:
Gold Fundamental Analysis Jan. 18, 2012, Forecast
rallied to its best in more than a month, relying on a weakening U.S. dollar and ongoing concerns about Europe’s recent debt downgrades.
Gold futures for February were up $24.80, or 1.5%, to $1,655.60 an ounce on the Comex division of the New York Mercantile Exchange. This was gold’s highest close since Dec. 13.
Gold was also riding the coattails of sharp increases for U.S. stocks and oil. Moreover, gold investors are worried about currency devaluation and loss of purchase power.The downgrades of the euro-zone countries means fiscal stimulus is not far behind.
Economic data is also helping moving markets as news that China’s output rose in the fourth quarter.
Data released earlier showed that China’s fourth-quarter GDP rose 8.9% from the year-ago period, beating estimates.
Support and Resistance levels for tomorrow S:1628.20 1609.30 1593.40
R:1697.20 1664.10 1659.00
Gold continues to be a strong buy, adding on the dips.
Originally posted here
