The metal lost 12% in 2015 extended the bearish waves in four consecutive year. The metal manages to hold the 200mema in November and December 2015. In case, if the metal manages to hold the same in January 2016, we expect a bounce of 10%.
After three straight years of gains, strategists are forecasting the U.S. currency will be a world beater again in 2016, strengthening against seven of 10 developed-world peers by the end of the year, according to the median estimate in a Bloomberg survey.
The brand new week wraps with high impact economic events.
December ISM manufacturing PMI, US December non-farm, Minutes of the Fed meeting on interest rates, China in December macroeconomic data (trade balance, CPI, PPI)
Global PMI around and Fed officials speak.
US ISM Manufacturing PMI: The manufacturing sector dips to 48.6 lowest level since June 2009. 2015’s highest reading was 53.5. Since July, the index has been struggling except October.
“Modest early Chinese demand is keeping gold buoyant above $1,060 in early trade,” noted MKS Group on Monday morning.
The Middle – East tensions supported the Oil and Gold prices to bounce today. The metal manages to trade above 20dsma. In an European session, the metal price is trading above all the hourly moving averages.
Trading resistance seems at $1,075.00, $1,078.00, and $1,082.00 levels.
Support finds at $1,070.00, $1,066.00 and $1,064.00
We expect the metal might bounce towards $1,080.00 and $1,085.00 in case if the price close above 20dsma.