01/06/15 Gold marks first monthly gain in four months

010615 XauUsd Monthly

Gold marks first monthly gain in four months. Erasing its earlier losses on Friday to trade higher, Gold marks its first monthly gain in four months, despite the metal trading somberly for most part of the month. On the a lack of conviction to take flight on either way, technical pattern remains well charted in the range of 1,170 – 1,230. Given that the week ahead boasted numerous economic data , some volatility is expected in the marketplace and most analysts are not expecting gold to break above its long-term range.

010615 XauUsd Weekly

Gold ended the week in negative territory for the second consecutive time, following the report of looming U.S. interest rate hikes. As the the prospect of higher U.S. interest rates boosted the U.S. dollars back to strength, Gold’s momentum took to the downside. The fresh selling took the precious metal on a break, holding above the psychological support at 1,180, In fact, when one pays close attention on the weekly chart, technical pattern is suggesting a head and shoulder formation. Ahead of the week, all eyes will be on the U.S. employment and Non-Farm payroll report to set Gold on its next direction.

010615 XauUsd Daily

Gold erased earlier losses on Friday to trade higher despite the U.S. GDP report came in a bit better than expected (0.7% vs. 0.8%). Un-phased by the fact that the U.S. first-quarter gross domestic product report came in slightly better than the forecasts, the precious complex pushed on in late session as short covering and bargain hunting had the precious metal peaking intra-day at 1,194. Interestingly, the gained wasn’t much of an upside, as technical picture looks set to continue to trade below the embolden downtrend line. Turning to the new month ahead, analyst are calling for gold to continue trading in its’ 1,180-1,194 range. with a break to the downside is looking more likely in line.

Trend Direction
Slightly bearish 1,171 1,176 1,181 1,199 1,206 1,215

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