The precious metal manages to stay above 20dsma but the lack of following up because of holiday season nears.
Real gross domestic product — the value of the goods and services produced by the nations
economy less the value of the goods and services used up in production, adjusted for price
changes — increased at an annual rate of 2.0 percent in the third quarter of 2015, according to the “third” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.9 percent.
In a thin liquidity, available day traders eye US durable goods orders. Economists expect the orders will dip to -0.6% in November.
RBC Capital: “Boeing orders were quite strong in November and thus the nondefense aircraft space should support topline durable goods orders nicely. We look for a +1.5% read on the broad measure. The guts of the report will likely be mixed. The headwinds facing the manufacturing arena from a strong USD/weakening commodity complex/slower global growth remain in place and should weigh on CapEx orders in the near term. That being said, extremely easy base effects should make for a firmer CapEx profile in H1 2016.”
SMH reported, Spot gold prices, down 9 per cent this year, will probably drop a further 12 per cent to $US950 an ounce by the end of 2016 as rising US interest rates reduce the metal’s appeal as an alternative investment, according to Oversea-Chinese Banking’s Barnabas Gan, compared with a median estimate of $US1100.
Bob Haberkorn, a broker at RJO Futures, told the Wall Street Journal: “The downside for gold appears to be limited, at least until the end of the year.” The real tests will come in the new year.
Trading support finds at $1,071.00, $1,067.00 and $1,065.00
Resistance seems at $1,075.50, $1,078.50 and $1,082.00
At yesterday’s article, we recommend buying favors only above $1,082.00 but not activated. During today’s session, small buying opportunity available above $1,075.00 but real strength only above $1,082.00 few pips above.
Selling opens below $1,065.00 levels.