Gold rise in trading Monday
The precious metal is off for a bullish trend this week, after the recent drop in the metal's price lured investors to purchase the metal. Gold fell this month by more than 5.6 percent, signaling the worst start since 1997, but a report from the US Commodity Futures Trading Commission showed that managed-money fund's long positions in gold have dropped for three straight weeks.
The US dollar index, which tracks the performance of the dollar against six-majors, rose on the daily scale to trade at 78.34, compared with the opening levels of 78.27 where it managed to reach a low of 78.19 and a high of 78.34.
The inverse relationship between gold and the dollar failed to prevent the precious metal from rising over the daily scale where the precious metal's currently trading at 1,348.44 an ounce, compared with the opening levels of 1,343.50 while setting a high of 1,353.02 and a low of 1,343.35. Gold futures rose 0.51% as it added $5.900 to trade at 1,347.900 an ounce.
Major Market Movers
Today's news focuses on the European continent, where manufacturing and services data from both Germany and the Euro Zone will be released, clearing the picture for investors about the sector's performance over the month of January.
The German services and manufacturing sectors gave out mixed signals about the performance of both, where the manufacturing sector's conditions dropped to 60.2 from 60.7 while the services sector's conditions improved to 60.0 from the previous revised 59.2.
Friday's Metal Fixes:
Talking about metal Fixes, we witnessed a drop in Gold fixes as the AM Fix was set at $1,344.00 an ounce, while the PM Fix was set at $1,343.50, meanwhile silver fixing was set at $27.14000 an ounce and Platinum AM Fixing was set at $1,812.00 an ounce that ascended by PM fixing to reach $1,817.00 an ounce, finally the Palladium AM fixing was set at $808.00 at the AM fixing which also inclined by PM fixing to $814.00 an ounce.
Silver for immediate delivery traded higher on the daily scale, at 27.80 an ounce, compared with the opening levels of 27.50, while touching a high of 27.96 an ounce and a low of 27.49 an ounce. Silver future contracts shed 1.45% or $0.398 to its value, trading at 27.825 an ounce.
Platinum for immediate delivery traded lower by $0.50, at $1,821.00 an ounce, Palladium gained by $3.0 to trade at $820.00 an ounce.
Technical Analysis for Gold
After the sharp decline last week, we see some positivity appearing with the weekly opening but we are still dominated by the harmonic formation- potential butterfly pattern-. This formation may take the metal towards 1322.00 and may extend towards 1298.00. The provided image explains the Fibonacci symmetry of the pattern;henceforth, the bearishness will be in favor during this weekas far as trading remains below 1366.00 with an extended potential resistance at 1395.00.