Gold unchanged in trading Tuesday
Cautious trading in commodities still dominate markets where gold traded at the opening levels Tuesday, with expectations that the metal will rise in the upcoming period as investors seek safe assets.
Gold for immediate delivery traded at 1,414.53 an ounce, setting a high of 1,417.17 an ounce and a low of 1,414.48 an ounce. Gold futures (February contracts) declined in trading by 0.53 percent as it lost $7.900 to trade at 1,415.000 an ounce.
Central banks continue to maintain low interest rates in order to boost recovery and economic growth, while the debt problem in Europe spurred a massive sellout for the shared currency, causing the euro to drop against the dollar in trading over the past two-months.
The U.S. dollar index, which tracks the performance of the dollar against six-majors traded at the opening levels of 79.24, while setting a high of 79.40 and a low of 79.22.
Major Market Movers
Busy day for European investors where inflation data from the Euro-Zone, labor data from Germany and Manufacturing data from UK will occupy investors' thoughts until the Federal Reserve release its Minutes report for the last rate decision, which the bank preserved near zero.
The number of people out of work in Germany is projected to rise in December, while unemployment rate to remain unchanged at 7.5 percent. Meanwhile, inflation in the Euro-Zone is forecast to remain steady and well anchored below the desired ECB rate of 2.0 percent. UK's manufacturing data will show easing conditions in December in the sector that has been driving growth in various economies around the world.
Silver sales are forecasted to rise in the upcoming period, as investors seek protection from inflation and wealth from the volatility they face in FX-exchange markets.
Silver for immediate delivery traded higher on the daily scale to trade at 30.77 an ounce, compared with the opening levels of 30.68, while touching a high of 30.84 an ounce and a low of 30.56.
Platinum for immediate delivery rose by $4.00 to trade at $1,764.00 an ounce, Palladium dropped by $4.0 to trade at $791.00 an ounce.
Technical Analysis for Gold
SMA 20 at 1413.00 is supporting the metal from below, while the four hour chart offers a positive crossover attempt on Stochastic. The harmonic formation is still in favor and thusthe bullishness might continue over intraday basistowards 1449.00, or towards 161.8% -the perfect correctional level-at 1473.00.