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Yesterday, the gold prices finished a highly volatile session with a slight strengthening on encouraging macroeconomic data from the U.S. The precious metal settled at 1232.87, up 0.4%.
On Thursday, U.S Commerce Department reported Core Durable Goods Orders to increase strongly by 1.8% in January, the highest growth since June 2014, surpassing the expectations. Also, the number of U.S. people enrolling for unemployment claims added by 272,000 last week, higher than previous number, partially due to holiday periods.
The recent powerful rally of the gold has been supported by great demand for safe haven against market headwinds and deepened economic outlook. Last Thursday, the OECD lowered global growth forecasts as emerging markets like China and Brazil, are predicted to be vulnerable to unstable interest rate environment and sluggish economic growth. Even the biggest economy of the world, the U.S., still suffers from external factors that may distract from Fed’s normalization path.
Gold prices jumped 5.4% in January, the strongest increase since January 2015. As a result, China’s gold imports from Hong Kong shrunk to the smallest since 2011 after having reached the peak of more than two years in December.
According to Bloomberg’s data compilation from Hong Kong Census and Statistics Department, Chinese import dropped from 111.3 metric tons in December to 17.6 metric tons in January 2016.
Chinese gold import from EU also declined to 43.4 metric tons in January from 57 metric tons. However, the China Gold Association still keep an upbeat tone over the prospect for the precious metal as market turmoil is deemed to intensify in the year, boosting physical demand.
Fig GOLD Daily Technical Chart
The current price is wandering between the Fibonacci 0.0 and 23.6 level after skyrocketing nearly 14% in one gulp over the two weeks. EMA 14 and EMA 21 continue supporting for further rally. RSI is so high as 66.8 that indicates strong buying forces.
Tonight, at 1:30 p.m. GMT, the U.S. Prelim GDP of Q4 2015 and Personal Spending will be published. The better for the U.S. economy means the worse for the gold price. However, the mixed result of U.S. reports will create unexpected waves during the trading session.
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