Where Is Gold Heading Next? Up or Down?

The buyers of gold have been, since the 30th of December 2015, yesterday’s session after 17:15 server time, placing more pressures on the metal and were able to lead it slightly above the 1059.08 zone to 1061.93.

In contrast, the bearish pressures were more tensed at the opening of yesterday’s trading session where the metal dropped from 1069.94 to 1059.08.

Probable Scenario

In the scenario where the price breaks above the 1063.20 level, today’s major decision making point for both, the bulls and the bears, the precious commodity could rise as high as 1067.81, 1069.94 and 1076.47.

The Stochastic oscillator also confirms that the bullish momentum has greater chances to prevail as the metal may retrace once again to the upside.

XAUUSD

Alternative Scenario

Alternatively, in the event where the bears are able to exert far greater pressures and force the price below the 1059.08 area, the precious metal could likely decelerate as low as 1051.53.

Today’s Major Announcements

  • The Initial Jobless Claims (Dec 25), the Continuing Jobless Claims (Dec 18), and the Chicago Purchases Managers’ Index (Dec) announcements are expected to have a medium impact on the U.S. dollar
  • There are no any major announcement that could influence the gold itself, but the economic releases on the U.S. dollar always have direct impact on the precious metal

Synopsis

  • Probable trend (Bullish):1063.20
  • Bullish take profit targets:1067.81, 1069.94, 1076.47
  • Stop loss target:1051.53
  • Alternative trend (Bearish): 1059.08

Bearish take profit target:1051.53

Ben Myers

Ben began his long career in international finance and investing after graduating with a degree in Finance & Accounting. Prior to founding a financial advisory firm he worked with multi-national institutions including HSBC and Bank of Ireland. After several stints as a chief analyst at forex/binary options companies Ben still remains a keen trader and featured contributor on numerous financial sites.