Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Gold Gains 2%, Yet May Face Downside Pressure

ByICN.com
Published 01/03/2014, 04:16 AM
Updated 07/09/2023, 06:31 AM

Precious-Gold climbed on Thursday, gaining around 2 percent, on some buying by investors after the drop in price to the lowest level in six months.
 
The remarkable drop in prices has encouraged some buying, yet the critical questions for how long would this buying continue amid the improvement in global data and after the Fed’s stimulus taper announcement.  
 
Data released today showed that European manufacturing remained unrevised at its highest in 31 months in December, while US ISM manufacturing widened expansion to 55.3 in December from 52.5 in November.  
 
Meanwhile, the yellow metal is trading around $1225.54 an ounce after hitting a high of $1228.40 and a low of $1203.13.
 
Now, the main support is around $1180 while the key resistance remains at $1270.
 
Last week, gold managed to retrace some of its losses, where it may succeed to end this week on another gain.
 
However, the shiny metal has recorded its first annual loss in 13 years in 2013 as the progress in global recovery dented the metal’s appeal as a safe haven.
 
Many analysts expect bearishness to continue this year after the announcement of the Fed which included tapering stimulus to zero by the end of next year.
 
Still, the effect of the stimulus withdrawal is not clear as markets are still not back to its normal level due to the year-start holidays; therefore, later in the month the real direction will take place.
 
The U.S. dollar rose against a basket of major currencies to hover around 80.78 after hitting a peak of 80.85.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.