We see an interesting and unusual picture. Stock indices are rising, but gold is not falling in price. It would seem that the enthusiasm of investors who continue to invest in risky assets of the stock market is on top. At the same time, there is still an element of instability and uncertainty in the financial market, which feeds the demand for gold, which enjoys the status of a defensive asset.
Investors in this way also insure against the possibility of a sharp rise in inflation. As of this writing, the XAU / USD pair is traded near 1880.00 mark, above important short-term support levels passing through 1874.00, 1865.00 (see Technical Analysis and Trading Recommendations)
.No important economic news is scheduled for today. Tomorrow the whole world will celebrate the New Year. Banks and financial markets will be closed, and on Thursday (December 31) and Friday (January 1) virtually all forex brokers and trading will be closed. Trading volumes will recover in full after the New Year, and, most likely, only after January 10. Although, one should not exclude high activity in the thin market in the first days of the new year.
On the eve of the New Year, the situation on financial markets remains unchanged. Investor optimism, fueled by the propensity of the world’s largest central banks to pursue extra-soft monetary policy and expectations of an imminent victory over the coronavirus, persists and pushes US and global stock indices towards new record highs.
Support levels: 1874.00, 1865.00, 1845.00, 1810.00, 1770.00, 1685.00, 1560.00, 1510.00
Resistance levels: 1907.00, 1933.00, 1963.00, 1976.00, 2010.00, 2075.00
Sell Stop 1868.00. Stop-Loss 1890.00. Take-Profit 1845.00, 1810.00, 1770.00, 1685.00, 1560.00, 1510.00
Buy Stop 1890.00. Stop-Loss 1868.00. Take-Profit 1907.00, 1933.00, 1963.00, 1976.00, 2010.00, 2075.00