Analysis

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GOLD
Jan 4, 2021, 10:09 AM GMT
#Commodities

Skewed Sentiment Likely to Prove a Major Driver of Gold

Markets are open and enthusiastic traders are returning from their Christmas holidays in a good mood, which is poised to affect gold's slumber from the last couple of weeks. The precious commodity, as was anticipated, was mostly trading in a narrow range over set period owing to the low levels of market liquidity. However, this is about to change as trading activity returns to normal.

Gold opened this week's trading session with massive gains, generating 1.55 per cent rally so far into Monday's session, which results from mounted trading anticipation over the weekend. The new year appears to have picked up from where 2020 left off - skewed market sentiment and polarised trading opinions concerning the reeling dollar, continue to represent the most significant determinants of the market's general direction.

This environment predicates the probable emergence of even more volatile price swings, which is quite likely to affect the price of gold. This effect is further going to be bolstered by the action-packed week ahead, with key unemployment and manufacturing numbers being released in the U.S. over the next five days.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
45.66 USD
20.04 USD
104.50 USD 0
6.80%
Short Term
+ -
45.66 USD
20.04 USD
Long Term
+ -
104.50 USD 0
Net % Gains
6.80%

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