FXTM: Gold Breakout 'Has Opened A Path Higher Towards $1,320'
Gold priceshave hit a three-month high with the help of a vulnerable U.S. dollar, says Lukman Otunuga, research analystat FXTM. “With the dollar stumbling into the New Year under renewedselling pressure, gold is likely to remain heavily supported, with pricespotentially appreciating towards $1,320 this week,” the analyst says. “From atechnical standpoint, the yellow metal is bullish on the daily charts, as therehave been consistently higher highs and higher lows. Prices are trading wellabove the 50[-day] simple moving average, while the MACD [moving averageconvergence/divergence] has also crossed to the upside. The decisive breakoutabove $1,300 has opened a path higher towards $1,320.” As of 8:04 a.m. EST,spot gold was $9.80 higher to $1,312.40 an ounce and peaked at $1,312.85, itsmost muscular level since late September. The euro hit a high of $1.20813, itsstrongest level since September.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Gold Stages Strong RallySince Mid-December Low
Tuesday January 02, 2017 08:14
Gold has risen sharply since mid-Decemberand more than recouped its losses from the first half of the month, Commerzbanksays. “It found support from the weak U.S. dollar, which depreciatednoticeably,” the bank says. “The trade-weighted dollar index had fallen to athree-month low at the end of last year. Gold received an additional boost whenit exceeded the technically important 200-day moving average and, a short timelater, the 100-day moving average. This allowed it to rise above thepsychologically important $1,300 per troy ounce mark again; it is trading at athree-month high as the new year begins.” A little before 8:10 a.m. EST, spotmetal was $9.40 higher to $1,312 an ounce, rallying 6% from the Dec. 12 low of$1,236.65.
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: Follow-Through Could Carry Euro StillHigher Vs. U.S. Dollar
Tuesday January 02, 2017 08:14
The U.S. dollar is continuing its slump from the final two weeks of 2017 andcould weaken some more on potential follow-through buying in the euro, saysBrown Brothers Harriman. The dollar weakness is also occurring against emerging-market currencies, withthe Hungarian forint rising nearly 1%. Analysts note that the euro zone'smanufacturing Purchasing Managers Index flash reading of 60.6 was confirmed byTuesday’s final reading and was the strongest since the data series began inmid-1997. “The euro has approached last year's high recorded in September near$1.2090,” BBH says. “The high recorded in the European morning is [near] $1.2080.We expected some follow-though buying, given the momentum in the second half ofDecember. We see the near-term risk extending toward $1.2165, which is the 50%retracement of the euro's decline from the 2014 high near $1.40.” Nevertheless,BBH says technical indicators are “stretched.” Metals traders closely monitormoves in the U.S. dollar since base and precious metals alike often moveinversely to the U.S. currency.
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