Gbobal FX Gold report

Gold has had a fascination with the $1200 level over the last few weeks which has seen it trade either side of this level. Over the last week gold traded in a narrow range under $1220 before falling sharply back below to close out last week. In the few weeks prior, gold made repeated runs at the resistance level at $1200 failing every time. Since that time it has returned to back above $1220 before easing lower. Early last week gold reached a new one month high above $1220. Then for the rest of the week gold eased back and gravitated to the key $1200 level again. Throughout November Gold enjoyed a strong resurgence back to the key $1200 level where it has met stiff resistance up until recently.

Throughout the second half of October gold fell very strongly and resumed the medium term down trend falling from above $1250 back down through the key $1240 level, down below $1200 to a multi year low near $1130. It spent a few days consolidating around $1160 after the strong fall which has allowed it to rally higher in the last couple of weeks. Earlier in October Gold ran into the previous key level at $1240, however it also managed to surge higher to a five week high at $1255. In late August Gold enjoyed a resurgence as it moved strongly higher off the support level at $1275, however it then ran into resistance at $1290. In the week prior, Gold had been falling lower back towards the medium term support level at $1290 however to finish out last week it fell sharply down to the previous key level at $1275.

During the second half of June, gold steadily moved higher but showed numerous incidents of indecision with its multiple doji candlestick patterns on the daily chart, around $1320 and $1330. At the beginning of June, gold did very well to repair some damage and return to the key $1275 level, then it has continued the momentum pushing a higher to its recent four month high. After moving so little for an extended period, gold dropped sharply back in May from above the well established support level at $1275 as it completely shattered this level falling to a four month low around $1240. It remained around support at $1240 for several days before its strong rally higher. It pushed down towards $1280 before sling shotting back and also had an excursion above $1300 for a short period before moving quickly back to the $1293 area again.

Gold fell more than 1 percent on Friday after U.S. November non-farm payrolls data beat forecasts, fueling expectations that the Federal Reserve will raise interest rates sooner rather than later and lifting the dollar. Labor Department data showed the U.S. economy added 321,000 new jobs last month, the largest number in nearly three years, and wages increased. That sparked a rally in the dollar, which hit its highest since mid 2007 against the yen, and prompted traders to bet the Fed will raise rates earlier in 2015 than formerly thought. Spot gold was last down 1 percent at $1,194 an ounce, while U.S. gold futures for December delivery were down $13 an ounce at $1,195. In the wake of the data spot gold hit a low of $1,186.10, down 1.6 percent. “It will be interesting to see how (gold) develops as we move towards the FOMC meeting on Dec 17,” ABN Amro analyst Georgette Boele said. “It will be interesting to see what they do with this statement. If we have a more hawkish Fed, more of an adjustment in interest rate expectations, and a still higher dollar,” it will be negative for gold.

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