Gold Analysis


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Gold Prices Sideways Ahead of Christmas

Gold prices are still visible consolidating just below the price of USD 1200 per troy ounce as the dollar strengthened and global stock prices move rally curbing demand for gold metal, amid some uncertainty over the Fed’s decision that said patient against rising interest rates.

Nonetheless, super accommodative monetary policy will not be stopped in the near future seen in the stock market seems to rejoice at the news.

The difference in monetary policy has been the main driver of the dollar strengthening in the second half of this year. BoJ, ECB and the PBoC will continue to conduct monetary easing policy, while the Fed is moving toward tightening.

As with any other central bank, the Fed does not want to see a stronger dollar. The ECB seems to be doing the same policy. Growing speculation that the ECB will announce the purchase of the debt at a meeting of the European Central Bank in January, although there are outstanding questions of legality and the persistent refusal of Germany.

Russian Rumor

Rumors about Russia that will sell gold reserves has added to speculation that occurred in the gold market. Russia has been the most aggressive buyers of gold in recent years and Putin has said that Russia does not want to depend on the US dollar as the world reserve currency. In this case, Gold could potentially play a role in the new monetary policy arrangements.

The rumor was denied by Vladimir Putin when interviewed by the Interfax news agency, Putin said it was up to the Central Bank to decide whether to lower the interest rate or not. The central bank should not sell gold reserves but they should provide a source of lending to the economy.


On movement Friday, gold trading opened in the range of USD 1197.94 per troy ounce. Gold prices rose slightly to move upward toward the highest daily price in the range of USD 1201.25 per troy ounce. Gold is back under pressure to move down and eventually closed the gold price in the range of USD 1194.95 per troy ounce. The movement of gold getting losses against the dollar as much as USD 2.99.

In general, the movement of gold in the 4-hourly chart looks still in bullish condition corrected. The price of gold was seen in the simple moving average indicator 200 and 50 which are areas of support and resistance for the movement of gold. Indicator of relative strength index (RSI 14) at the level of 43 to give an indication of the potential price in a state of minor bearish. Likewise, the momentum indicator 14 provides an indication that the price will still move bearish minor.

The intraday bias, gold price movements on the 4-hourly chart looks to be in a correction phase and the current price looks will test support area. If the gold price moves down the support of USD 1190.39 per troy ounce will first penetrated where there is potential for the gold price will move towards support at USD 1165.18 per troy ounce. Conversely, if the price of gold, the dollar strengthened against the resistance of USD 1217.32 per troy ounce to be penetrated by the movement of the price at which it is likely the price will move up towards resistance at USD 1238.13 per troy ounce.

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