Economic Events: (GMT)
13:30 USD Initial Jobless Claims 385.00K 399.00K
13:30 USD Continuing Jobless Claims 3590.00K 3628.00K
Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.
Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance.
A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD. If the report comes in under the 385K we can expect to see the USD fall and a rise in Gold, but if the report is at the 399K level or above expect to see the USD rally and trend upwards on solid economic news.
Analysis and Recommendations:
Gold futures mounted a rise today, ending the day at a five-week high and extending rise to two days. Gold for February delivery ended $4.30 up, or 0.3%, at $1,659.90 on the Comex. Prices started the day in negative territory but turned upward as investors saw a hint of inflation in a U.S. government report and the dollar extended its fall. Face it with the situation in Europe the safety of gold looks better and better every day. But watch for a dollar rally, but gold will mount a comeback if the USD does rally
Support and Resistance levels for tomorrow
S: 1631.9 1612.9 1595.9
R: 1668. 1658.7 1653.1
Gold continues to be a strong buy, adding on the dips.