Profit taking techniques send gold to slump

Investors took advantage of gold contracts trading near its historic high levels yesterday and send gold to depreciate on profit taking techniques. The Fed announced its Minutes for December 14 meeting, explaining the need for a second stimulus measure that was presented to markets in November worth $600 billion.

As for today, gold recovered a small fraction of the losses acquired yesterday where gold for immediate delivery traded at 1,382.66 an ounce, setting a high of 1,384.75 an ounce and a low of 1,377.15 an ounce. Gold futures (February contracts) gained 0.36 percent as it added $4.900 to trade at 1,383.700 an ounce.

The U.S. dollar index, which tracks the performance of the dollar against six-majors traded lower, at 79.48, compared with the opening levels of 79.56, while setting a high of 79.65 and a low of 79.48.

Platinum, Palladium and Silver all declined in trading despite the decline in the value of the dollar against majors, as the greenback holds a strong inverse relationship with commodities.

Major Market Movers

Today's economic calendar holds important data from Europe and the U.S. where the service sector in the Euro-Zone will present its PMI index, with expectations that the sector added more gains to recovery.

The U.S. will present its ADP employment data, ahead of the release of the infamous jobs report later on this week. The ADP employment index will show that the private sector added nearly 100 thousand jobs in December, according to market's median estimate.

Other Metals

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 lower on the daily scale, at 29.58 an ounce, compared with the opening levels of 29.71, while touching a high of 29.86 an ounce and a low of 29.47 an ounce.

Platinum for immediate delivery dropped by $14.50 to trade at $1,740.00 an ounce, Palladium dropped by $5.25 to trade at $768.50 an ounce.

Technical Analysis for Gold

Yesterday's violent bearishness forced us to look at the metal from a classical point of view, where we can see an attempt to breach the support line of the classical pattern. Gold did not confirm this breakout until now. On the other hand, Stochastic and RSI 14 are showing clear oversold signs. Thus,the outlook is neutral todaysince the metal is stable below 1,395.00, while observing trading near the support levels at 1,375.00 for a possible breach.

r intraday basistowards 1449.00, or towards 161.8% -the perfect correctional level-at 1473.00.