Thursday, 26 April 2018
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--

Gold Prices Expected To Trend Higher In Quiet Holiday Week
Monday, 25 December 2017 19:11 WIB | GOLD CORNER |Gold OutlookGold Corner

U.S. dollar struggling to find momentum and last-minute tax selling in record-breaking equity markets could help push gold higher this week in what likely will be a quiet holiday trading period, according to some analysts.

Heading into the Christmas holiday weekend, gold futures have pushed to a more than two-week high. February gold futures last traded at $1,278.20 an ounce, up 1.6% since two weeks earlier. This is yellow metal™s second consecutive positive weekly close.

The rally in gold is also helping to push silver prices up, with this metal also trading at a two-week high. March silver futures last traded at $16.44 an ounce, up more than 2% since two weeks earlier.

Looking ahead to this week, many analysts are bullish on gold as the U.S. dollar could continue to struggle heading into the new year. The U.S. dollar index is down almost 10% this year in what has been the worst year for the currency in more than a decade.

œThe U.S. dollar didn™t see much of a rally on the tax vote and I don™t think that bodes well for 2018, said Bill Baruch, president of Blue Line Futures. œI think we will see the dollar push lower in the new year and that will be good for gold.

While Baruch is bullish on gold in the near term, he added that he doesn™t know if it™s a great buy at these levels. He said the time to buy was following last week™s Federal Reserve monetary policy decision.

œWe were kind of looking for a pullback this past week as a good entry point, but that didn™t happen. I think gold is still at a good level as I am confident prices will be higher in three weeks but I just wouldn™t chase this market, he said.

Colin Cieszynski, chief market strategist at The Fundamental Technician, said that he agreed that investors shouldn™t try to chase the market, as technically the price is in the middle of a new trading range.

œI think you could nibble at gold at these levels, but I definitely wouldn™t want to chase this market, he said.

Not only is gold benefiting from a struggling U.S. dollar, but Cieszynski added that gold is seeing reduced headwinds from a collapse in Bitcoin, which is currently down more than 20% on the day. He added that further weakness in the cryptocurrency could help gold prices push higher this week.

œGold is in the middle of a range between $1,240 and $1,300, and I think prices could go higher as we are seeing solid accumulation, he said.

David Madden, market analyst at CMC Markets, said that while he is not expecting to see major moves in gold this week, he sees prices modestly higher as equities could fall as investors take profits ahead of the new year.

Investors have until Dec. 29 to close out any winning trade for a realized profit for the year. These gains would be subject to capital gains taxes in the new year. Along with taking profits, investors have also been closing out their losing positions, which is called tax-loss selling, as they are able to use these losses to balance out any strong gains, according to tax professionals.

œI think weaker equities this week will be positive for gold prices as the market is in a positive uptrend since last week™s [Federal Reserve monetary policy meeting], he said. ˜Buying following the Fed meeting has been a good strategy the last few years and I think we can see that trend continue. I think we could see gold test $1,300 an ounce in early January.

Madden added that markets aren™t expecting the first rate hike of 2018 to come until March, which means that gold has room to move higher in the this few months. He added that there is still a lot of uncertainty surrounding monetary policy this year as there are still several vacant seats that need to be filled at the central bank.

œIt™s hard to know what to expect from the Fed when we don™t know who the new members will be, he said.

CME 30-Day Fed fund futures are pricing in a more than 50% chance of a rate hike by March.

For Madden, the key level to watch in gold is the 200-day moving average, which comes in at $1,277.70 an ounce. He added that if that is broken, investors could expect to see a push to $1,300 an ounce.

Lukman Otunuga, research analyst at FXTM, said that he sees $1,280 an ounce as a key resistance point to watch in the near term.

Analysts are also watching $1,290 an ounce as they say this is a key retracement level from the July lows to the September highs.

The only major data to be released this week is the December consumer confidence report from the U.S. Conference Board.

Source: Kitco News

RELATED NEWS
Gold On The Defensive - Peter Hug...
Tuesday, 24 April 2018 05:44 WIB

Pada liburan minggu lalu, saya kehilangan nuansa beberapa hari perdagangan terakhir. Kami menyebutkan bahwa gambaran teknis tampak positif dengan peringatan bahwa level $ 1.355 pada basis penutupan di...

Gold Will See New Highs After Markets Get Past Hawkish Fed Outlook - TD Securities...
Tuesday, 17 April 2018 16:36 WIB

Pergerakan positif harga emas baru-baru ini telah tertahan oleh pandangan Federal Reserve yang hawkish, TD Securities mengatakan dalam sebuah laporan. œTensi tinggi internasional, USD yang agak lem...

Gold Disappoints Bulls, Restrained By White Metals - Saxo Bank...
Monday, 9 April 2018 20:59 WIB

Para bulls emas sekali lagi kecewa dengan kurangnya pergerakan logam kuning ini untuk menembus level resisten kunci di level $ 1,355 per ounce, Saxo Bank mengatakan, menambahkan bahwa logam mulia seda...

Get Ready: 'Big Breakout For Gold' Is Coming - Bloomberg Intelligence...
Monday, 2 April 2018 11:37 WIB

Rally emas kemungkinan akan terjadi di bulan April, kata analis strategi komoditas Bloomberg Intelligence Mike McGlone, menambahkan bahwa tidak banyak yang mengerti bagaimana itu bisa terjadi. "Sesua...

Gold And The Fed Rate Hike...
Tuesday, 27 March 2018 04:44 WIB

Emas terus diperdagangkan pada pola penguatan sejak the Fed mulai menaikkan suku bunga. Hal itu terdiri dari pola pelemahan jelang pertemuan Fed yang diantisipasi, sedikit lebih rendah pada saat pengu...

LATEST NEWS
Stock Declines Ease as Results Roll In; Oil Climbs

European stocks edged lower following a mixed session across Asia as investors grappled with a flood of company earnings. The dollar pulled back from its highest in three months, Treasuries fluctuated, and oil gained. The Stoxx Europe 600 Index...

Tokyo Stocks Close Higher as Yen Stays Weak

Tokyo stocks closed higher Thursday as a cheaper yen helped boost market sentiment, with investors pursuing shares in companies expected to report brisk earnings. The benchmark Nikkei 225 index gained 0.47 percent, or 104.29 points, to end at...

Gold Holds Near Five-Week Low as Dollar Strengthens

Gold holds drop after dollar strengthens to 3-month high and Treasury prices extend losses. Bullion for immediate delivery little changed at $1,323.71/oz at 12:47pm in Singapore after closing at lowest since March 20: Bloomberg generic...

POPULAR NEWS
Gold Futures Fall to 2-Week Low as Haven Demand Wanes
Tuesday, 24 April 2018 01:34 WIB

Gold declines to a 2-week low as demand for a haven eased amid cooling geopolitical tensions and a rally in the dollar. Bullion futures...

Gold On The Defensive - Peter Hug
Tuesday, 24 April 2018 05:44 WIB

On holiday last week, I am missing the nuance of the past few trading days. We suggested that the technical picture was looking positive with the...

Gold futures settle higher for first time in four sessions
Wednesday, 25 April 2018 01:10 WIB

Gold settled higher Tuesday, for the first time in four sessions, finding support as a steep decline in a benchmark U.S stock index drove haven...

Gold prices settle at lowest in 5 weeks
Thursday, 26 April 2018 00:51 WIB

Gold prices settled with a loss on Wednesday, as strength in the U.S. dollar and Treasury yields and some gains in the stock market combined to push...