Gold’s biggest drop in a year years

Gold traded slightly higher in the first day of the week, affected by the downgrade of Greece's credit rating by Fitch Rating Agency to Junk, following similar steps made by other rating agencies earlier. The Euro dropped and the dollar rose, affecting trading in commodities, due to the inverse relationship between the greenback and commodities.

The U.S. dollar index, which tracks the performance of the dollar against six-majors traded
unchanged, at 79.07, which is also the highest and the lowest.

Gold traded slightly higher at 1,362.31, compared with the opening levels of 1,360.95 while setting a high of 1,365.70 and a low of 1,360.87. Gold futures gained 0.11% as it added $1.500 to trade at 1,362.00 an ounce.

Major Market Movers

Today's economic calendar lacks data from around the world, keeping the opportunity to investors to determine the general trend in markets, therefore, volatility might be witnessed throughout the day.

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 28.29 an ounce, compared with the opening levels of 28.65, while touching a high of 28.94 an ounce and a low of 28.08 an ounce. Silver future contracts added 0.12% or $0.035 to its value, trading at 28.355 an ounce.

Platinum for immediate delivery traded higher by $7.50, at $1,813.00 an ounce, Palladium rose by $2.00 to trade at $790.50 an ounce.

Technical Analysis for Gold

Gold fluctuated heavily last week and in the end responded to the negativity of the harmonic pattern, which might pressurethe metal to continue south this week. Stochastic is negative and RSI is trading to the downside, and also the 20 & 50 MA are acting as the ceiling for trading and all support our expected bearishness. Steady trading with daily closing below 1395.00 is required for our weekly expectations to remain valid.