06 Dec Friday View

Gold gave up pretty much of all gains it had yesterday what analysts are calling a short covering rally which has now stalled. Focus is back on to the U.S. economic data which Federal Reserve will take into account to whether or not and if yes then in what magnitude to modify the current monetary policy. Better than expected GDP report yesterday at 3.6 % and better Unemployment Claims at 298 K Vs. 328 K may be taken as positive signals in the meaning that some indication on scaling back its QE would be provided in their 17-18 December meeting by Fed. Today there are some additional data due to release; U.S. Non Farm Employment change, Unemployment Rate and Prelim UoM Consumer Sentiment, which will be watched very closely.

Gold as of now is trading at around its Pivot of USD 1228 with R1 at USD 1240 and S1 at USD 1213.

Trade Happy, Trade Safe :)