Gold Outlook 31st December 2015
After declining almost a percent on Wednesday, gold sees a minor pullback in thin Asian markets with subdued volatility as we head towards end of 2015 trade.
Currently, gold trades marginally higher at 1061.50, extending the recovery from a brief dip below 1060 levels reached in the last NY session. Gold prices inch higher in Asia on the back of softness seen in the greenback against its major peers while negative global equities also lend offer some respite to the gold bulls heading towards 2016.
Looking ahead, as we close in 2015 trades, the Fed’s outlook on further rate increases and oil price movement into 2016 lurks on investors’ mind, keeping gold within the lower end of the year’s trading range.
Gold prices witness a drop of 10% in 2015 and remains poised to book third yearly loss, extending its longest slump since 2000.
The metal has an immediate resistance at 1066.88 (1h 50-SMA) and 1070 (round number). Meanwhile, the support stands at 1058.60 (Dec 30 Low), below which doors could open for 1052.70 (Dec 18 Low).