Gold Steady After Strong Gains

Gold is steady on Monday, after posting strong gains of 1.6% on Friday. In Monday’s European session, the spot price stands at $1191.38 per ounce. There are no US releases on Monday, but we’ll get a look at CB Consumer Confidence, a key event, on Tuesday. The markets are expecting a sharp improvement in the December release, with an estimate of 94.6 points.

With no economic releases on Monday, today’s lead event is the political deadlock in Greece. Earlier on Monday, Greece lawmakers failed to elect a new president for a third time, so a general election has now been scheduled for January 25. Greece agreed to a EUR 240 billion program with the EU, ECB and IMF, but the austerity measures the country was forced to implement have proven deeply unpopular, and one major party has promised to rescind the agreement. The political uncertainty in this latest Greek saga will likely provide some twists and turns and could affect the price of gold.

XAU/USD for Monday, December 29, 2014

XAU/USD December 29 at 12:05 GMT

XAU/USD 1191.38 H: 1197.41 L: 1190.66

XAU/USD Technical

• XAU/USD is showing limited movement in the Asian and European sessions.
• 1200 remains a weak resistance line. 1215 is next.
• 1175 is an immediate support line.
• Current range: 1175 to 1200

Further levels in both directions:

• Below: 1175, 1156, 1130 and 1111
• Above: 1200, 1215, 1240, 1255 and 1275

OANDA’s Open Positions Ratio

XAU/USD ratio has a majority of long positions, indicative of trader bias towards gold moving to higher ground.

XAU/USD Fundamentals

* There are no US releases on Monday.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.