Monday, January 12, 2015

Gold has posted slight losses on Monday

Gold has posted slight losses on Monday, trading at the spot price of $1219.73 per ounce in the European session. Gold posted strong gains to end the week, as the metal trades comfortably above the key line of $1200. On the release front, the only data release out of the US is the Labor Conditions Market Index. As well, FOMC member Dennis Lockhart will deliver a speech in Atlanta.
XAU/USD posted gains in the Asian session. The pair has reversed directions in European trade and given up the earlier gains.
1215 is a weak support line. The round number of 1200 is next.
On the upside, 1240 an immediate resistance line. XAU/USD ratio is almost unchanged on Monday. This is not consistent with the pair’s movement, as gold has posted slight losses. The ratio remains a split between open and short positions, indicating a lack of trader bias as to what direction the pair will take next.