Gold drops ahead of UK growth data
Gold extends its fourth-consecutive drop Tuesday, where optimism dominated market's on stronger indications that recovery is gathering momentum, boosting therefore demand for equities and luring investors away from the metal as an alternative investment.
The US dollar index, which tracks the performance of the dollar against six-majors, declined on the daily scale to trade at 77.86, compared with the opening levels of 77.91 where it managed to reach a low of 77.84 and a high of 78.02.
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 1,332.30 an ounce, compared with the opening levels of 1,334.05 while setting a high of 1,338.45 and a low of 1,329.31. Gold futures rose 1.09% as it added $14.600 to trade at 1,329.900 an ounce.
Major Market Movers
The economic calendar shows that the British economy will release its advanced reading for the fourth-quarter of 2010, where analysts forecast a growth rate of 0.5% compared with the third-quarter's expansion of 0.7 percent.
The US economy will release its consumer confidence report later on today, with expectations of a big rise in confidence during January to 54.2 from 52.5.
Talking about metal Fixes (Jan 24), we witnessed a drop in Gold fixes as the AM Fix was set at $1,347.50 an ounce, while the PM Fix was set at $1,343.00, meanwhile silver fixing was set at $27.56000 an ounce and Platinum AM Fixing was set at $1,824.00 an ounce that reached by PM fixing to reach $1,822.00 an ounce, finally the Palladium AM fixing was set at $818.00 at the AM fixing while being set by PM fixing at $816.00 an ounce.
Silver for immediate delivery traded lower on the daily scale, at 26.67 an ounce, compared with the opening levels of 29.93, while touching a high of 27.04 an ounce and a low of 26.59 an ounce. Silver future contracts shed 2.25% or $0.616 to its value, trading at 26.705 an ounce.
Platinum for immediate delivery traded lower by $22.50, at $1,790.00 an ounce, Palladium declined by $15.00 to trade at $791.50 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.