Although we have witnessed a slight increase in gold spot price, it's remains under pressure by US dollar control. XAU/USD rallied on Tuesday from 1262.11 low and clocked a high 1276.7 after negative US consumer confidence.
In yesterday's trading sessions, gold couldn't keep it's short upswing gains, but decreased again to touch 1264.69 from below as US dollar index peeked to 99.09. Today the US dollar index sank to 98.61 and gold took a slight break, rising to 1269.04 intraday. This was near it's daily pivot, but still under pressure awaiting further central banks decision in the coming period.
Trend: bearish
Key levels to watch : Daily Pp 1268.50
First resistance: R1 1276.99, R2 1287.74, R3 1293.91 H4
First support: S1 1260.82, S2 1247.54, S3 1238.15 H4
Remark: Although market might witness an upswing short term trend due to festival marriage in India. Gold, on the long run still remains under pressure on stronger US dollar in response to hawkish Fed rate in December. Look forward for today's US economic news at 1:30 PM GMT which will determine how the inverse direction between US dollar index and gold will sustain.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.