Gold vs. WTI vs. 'the almighty' US dollar

Currently, the Gold spot is trading at 1237.34, marginally down -0.08% or (104)-pips on the day, having posted a daily high at 1243.76 and low at 1236.54.

As noted on a previous report at FXS, "Market sources indicate that long-gold positions may be adjusted as the metal reaches $1260-80 region as a healthy 'profit taking' should take place. Nevertheless, if Trump's tax cuts hit the wires in the next 2 weeks, traders and investors would need to evaluate their portfolios as equities (specific sectors), and other assets can build up momentum and become more attractive than Gold in the short-term. Hence, Gold bugs can be 'over-optimistic' ( won't hear the bullet) as the shiny metal has no yield and in due time this dynamic could reset its current bullish trajectory."

China's voracious Gold demand

According to market sources, China net imported close to 1300 tonnes of Gold an estimated 17% lower from 2015. However, the figure still works as proof and continued evidence of the demand variable in the Chinese domestic market, while developed countries build gragantuan debt levels via 'fiat currencies.'

Historical data available for traders and investors indicates during the last 7-weeks that Gold spot had the best trading day at +1.41% (Jan.5) or 1664-pips, and the worst at -1.11% (Jan.18) or (1331)-pips.

Technical levels to watch

In terms of technical levels, upside barriers are aligned at 1260 (200-DMA), then at 1290 (high Nov.10) and above that at 1330 (high Nov.9). While supports are aligned at 1206 (low Feb.3), later at 1186 (50-DMA) and below that at 1140 (low Jan.3). On the other hand, Stochastic Oscillator (5,3,3) seems to head north, therefore, there is evidence to expect further Gold gains in the near term.

WTI - ongoing flirting on the edge

In terms of technical levels, upside barriers are aligned at 54.30 (high Feb.2), and above that at 55.20 (high Jan.3). Later, supports are aligned at 52.60 (50-DMA), next at 50.20 (100-DMA) and finally below that at 48.20 (200-DMA).

WTI finds support near $53.00 ahead of data

US dollar index - not over until is over

The greenback – gauged by the US Dollar Index seems muted 'at 50-DMA gates' which contributed to a sell-off across the board. However, the bullish tone hasn't been diluted as long as the buck holds 100.20 handle.

In term of technical levels, upside barriers are aligned at 101.74 (high Feb.15), then at 102.48 (high Jan.9) and above that at 103.20 (high Dec.23). Meanwhile, supports are aligned at 99.96 (100-DMA), later at 98.54 (low Nov.11) and finally below that at 97.54 (low No.8).

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