FXstreet.com (Barcelona) - The Gold has opened the week with a positive note after the previous losses which take the metal from all time high at $1,226/oz in Dec 4 to $1,209/oz last Friday Dec 11. Today session the XAU/USD is rising 0.80% so far from opening price at $1,114/oz to the current $1,124/oz after hitting $1,128/oz as fresh intra-day high.
Gold is rising on the back of Russian central bank has announced last Saturday its decision to buy 30 tones of gold from Gokhran as well as the Bank has affirmed that Gokhran has canceled their plans to sell the gold on the open market as the economy has shown signs of recovery.
Last Friday, the gold closed its second consecutive negative week after closing with 3.90% weekly losses from opening price action at $1,161/oz to close at $1,115/oz. Gold reached $1,109/oz as intra-week low.
According to the Saxo Bank Strategy Team, the end of year position squaring has begun with the gold suffering heavy losses: The 9% correction seen over the past week have already been met by new buying interest so given the general positive outlook for 2010 current levels may turn out to be a good area to begin re entering the market from. It is also worth mentioning that the recent sell off have brought us closer to the level where IMF sold 200 metric tons to India back in early November. The recent move lower could attract renewed interest from another central bank to buy the remaining 200 tons that the IMF still have on offer. Such a sale would undoubtedly be viewed positively as it removes a potential overhang over the market and confirms Gold status as storage of value. Technically gold short term looks vulnerable to further weakness for move towards USD 1,100 and potentially USD 1,085.
Australian Dollar's decline from 0.9195 high on Friday found support at 0.9055 low on Asian session, and the Aussie has bounced up to consolidate withi8n a range from 0.9100 to 0.9125 on early European session.
USD/JPY rally from 87.40 low on December 9, peaked on Friday at 89.80, and the pair's pullback has extended during Asian session to 88.40 low and Dollar's following rebound was halted at at 89.00, sending the pair down to 88.55 at European session opening.
Euro decline from 1.4770 area on Friday found support at 1.4600 and the Euro bounced up during Asian session to reach 1.4685 high where the Euro found resistance, which is being tested at European session opening times.