Gold’s biggest drop in a year years
The start of the year brought the longest losing streak for gold since August 2009, where investor's look upon the U.S. economy as a savior to economic growth with prosperity and signs of strengthening economy have emerged, causing a massive sellout for haven and targeting the dollar which led to the rise of the single currency against majors over the past month.
Gold dropped as demand for save haven and safe assets depreciated, where gold for immediate delivery traded at 1,366.59 an ounce, setting a high of 1,373.05 an ounce and a low of 1,365.62 an ounce. This is compared with the opening levels of 1,371.30 an ounce. Gold futures lost 0.35% as it lost $4.800 to trade at 1,366.900 an ounce.
The report arrives ahead of the infamous jobs report that will be released later on today. Debt woes continue to mount in Europe, accordingly, affecting the ability of the region's economies to report strong fundamentals that would support global recovery.
The U.S. dollar traded at the opening levels on the U.S. dollar index, which tracks the performance of the dollar against six-majors, at 80.94, while setting a high of 81.01 and a low of 80.90.
Major Market Movers
Today's economic calendar holds important data, with Germany releasing its trade balance report, which is the main driver of recovery in the region, furthermore, the euro-zone will present its growth figures for the third quarter of 2010 and the U.S. will present its labor data figures with expectations that the economy managed to add 150.0 thousand jobs during December, according to market's estimates of the nonfarm payrolls.
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 28.76 an ounce, compared with the opening levels of 29.06, while touching a high of 29.10 an ounce and a low of 28.64 an ounce. Silver future contracts added 1.12% or $0.326 to its value, trading at 28.800 an ounce.
Platinum for immediate delivery traded unchanged at $1,723.00 an ounce, Palladium dropped by $4.00 to trade at $751.50 an ounce.
Technical Analysis for Gold
Gold is declining gradually as RSI 14 is currently touching the value of 30.00. It prevents it from showing panic sell-off actions but since trading is stable below the previous broken trend line,the bearishness will be in favor over intraday basis. A breakout below 1360.00 will accelerate this awaited bearish wave.