Traders enjoying roller coaster movement in Gold

Since the beginning of the New Year, Traders taking benefit from the range bound market movement in Gold.

The yellow metal benefited from yet more stock market weakness, especially in China, and a sliding US dollar that makes gold more attractive for foreign buyers. A renewed stock sell-off in Asia spurred demand for safe-haven gold that usually rises in times of political and financial uncertainty.

The outlook for gold for this year is pessimistic as the Federal Reserve (Fed) is expected to continue to lift its interest rates, which usually benefits the US dollar, but weighs negatively on gold as a non-interest bearing asset. Comments from Fed officials are now in the close spotlight for some hints on whether the next rate hike occurs in March, or later.

To the down side key support level falls at $1061 levels and on the other side key resistance level is seems at $1112 levels.

No major economic data are expecting from the US as US banks will be closed in observance of Martin Luther King Day.

Daily outlook for the Gold remains bullish. We prefer to go long on XAUUSD, Entry at $1088-1090, stop loss $1082 and Target $1102 levels.