Gold prices have moved higher together with equity markets. This suggests that traders remain concerned about economic developments. Positive comments out of the US and China regarding the phase-one trade deal confirm that it was rushed through as a political tool. A growing number of economists agree that the deal has limited positive impacts on the global economy. Will the advance in Gold carry into the new year? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
The Japanese All Industry Activity Index slumped and confirmed that global economic problems persist. Traders will now wait for Canadian GDP data, followed by US durable goods data. The Chicago Fed National Activity Index and New Home Sales are also eagerly anticipated. What impact will it have on price action? Will it allow bulls to keep pushing ahead or can it awaken bears? Today’s fundamental analysis will take a look at price action in both directions.
Here are the key factors to keep in mind today for Gold trades:
- Australian Private Sector Credit: Australian Private Sector Credit for November increased by 0.1% monthly and by 2.3% annualized. Economists predicted an increase of 0.2% monthly and 2.4% annualized. Forex traders can compare this to Australian Private Sector Credit for October, which increased by 0.1% monthly and by 2.5% annualized.
- Japanese All Industry Activity Index: The Japanese All Industry Activity Index for October decreased by 4.3% monthly. Economists predicted a decrease of 4.3% monthly. Forex traders can compare this to the Japanese All Industry Activity Index for September, which was increased by 1.5% monthly.
- Japanese Leading Index and Japanese Coincident Index: The Final Japanese Leading Index for October was reported at 91.6 and the Final Japanese Coincident Index was reported at 95.3. Forex traders can compare this to the previous Japanese Leading Index for October, which was reported at 91.8 and to the previous Japanese Coincident Index, which was reported at 94.8.
- German Import Price Index: The German Import Price Index for November increased by 0.5% monthly and decreased by 2.1% annualized. Economists predicted an increase of 0.4% and a decrease of 2.3%. Forex traders can compare this to the German Import Price Index for October, which decreased by 0.1% monthly and by 3.5% annualized.
- Mexican CPI: The Mexican Bi-Weekly CPI for the week ending December 15th is predicted to increase by 0.37% monthly and by 2.65% annualized. Forex traders can compare this to the Mexican Bi-Weekly CPI for the week ending December 1st, which increased by 0.09% monthly and by 2.85% annualized. The Mexican Bi-Weekly Core CPI for the week ending December 15th is predicted to increase by 0.41% monthly. Forex traders can compare this to the Mexican Bi-Weekly Core CPI for the week ending December 1st, which increased by 0.01% monthly.
- Canadian GDP: The Canadian GDP for October is predicted flat at 0.0% monthly and to increase by 1.4% annualized. Forex traders can compare this to the Canadian GDP for September, which increased by 0.1% monthly and by 1.6% annualized.
- US Preliminary Durable Goods Orders: US Preliminary Durable Goods Orders for November are predicted to increase by 1.5% monthly and Durables Excluding Transportation are predicted to increase by 0.2% monthly. Forex traders can compare this to US Durable Goods Orders for October, which increased by 0.5% monthly and to Durables Excluding Transportation, which increased by 0.5% monthly. Capital Goods Orders Non-Defense Excluding Aircraft for November are predicted to increase by 0.2% monthly and Capital Goods Shipments Non-Defense Excluding Aircraft are predicted flat at 0.0% monthly. Forex traders can compare this to Capital Goods Orders Non-Defense Excluding Aircraft for October, which increased by 1.1% monthly and to Capital Goods Shipments Non-Defense Excluding Aircraft, which increased by 0.8% monthly.
- US Chicago Fed National Activity Index: The US Chicago Fed National Activity Index for November is predicted at -0.31. Forex traders can compare this to the US Chicago Fed National Activity Index for October, which was reported at -0.71.
- US New Home Sales: US New Home Sales for November are predicted to decrease by 0.4% monthly to 730K new homes. Forex traders can compare this to US New Home Sales for October, which decreased by 0.7% monthly to 733K new homes.
Should price action for Gold remain inside the or breakout above the 1,477.30 to 1,492.00 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,484.25
- Take Profit Zone: 1,517.60 – 1,527.55
- Stop Loss Level: 1,470.00
Should price action for Gold breakdown below 1,477.30 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,470.00
- Take Profit Zone: 1,439.00 – 1,445.40
- Stop Loss Level: 1,477.30
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