Even though equity and commodity markets were very volatile in this starting month of 2016, Gold could not rally with a same pace with which the equities had a fall. Major indices like DAX and S&P 500 fell by more than 10% due to the rout created by oil and China. Gold has tried sustaining above 1100 levels and in my analysis gold will show consolidation in the time to come when equities will start stabilizing and commodities will start moving higher from their lows.
Gold is raoring high on the back of equity fall. but this rise is not stanfing on a strong pillar. There is no doubt that Indexes like DAX and S&P are at thier crutial levels, and they are gonna rebound soon. They have to recover more than 20% to stand at the postion from where the rout started. I expect the negitivity to continue till the end of February, there is large expectations that strong steps are soon to be taken from ECB, POB and BOE. On the other hand memebers of oil markets are trying to cut a deal on oil production. So, one the recovery starts, gold will back to in weaker hands, it might touch the levels of $1050 or even $990.
It is going for 1200 right now
Till all market rebounds gold is going high. i am expecting it to touch 1230 in next week. Also Physical demand in Asian countries is adding much support to gold prices. Recent fed statement added short term buying for gold, till the time interest rates are increased.
On Longer view sell gold, buy silver.
With the way things are going we might actually see Gold reach 1280 soon, perhaps even by the end of the week.
As it was mentioned earlier, the rebound will weaken the safe haven bids for the bullion, the gold seem loosing with a little rebound. If indices like S&P and DAX reach their initial levels from where the downfall has started, then this kind of pace will lend gold prices to touch the levels of $1000 going ahead. The physical demand is constantly decreasing in the top demanding countries like India and China. So overall, Bullion is a sell.
Gold is the most manipulated trading item there is. Nothing will change that
Gold and EUR/USD are pretty equal in that regard, I think.
In general, we still haven't seen a strong self-off in the precious metals market yet. If we consider the plethora of global problems at hand and confirmed by the financial institutions
Gold bounced off the support at 1200, but the bullish trend won't be confirmed before it breaks above the previous high at 1263.