The October month has not been a good one for Gold as we saw a huge drop from the beginning of the month and it was a great month for the bears. This drop is due to the great rise in the US dollar this month, as we all know the correlation is negative towards the yellow metal. commodities-news/gold.
December Comex Gold futures spiked more than 1 percent on Friday to its highest level since October 4 on Friday after the U.S. Federal Bureau of Investigation (FBI) said it will further investigate Democratic presidential candidate Hillary Clinton’s use of a private email system.
Gold continues to trade mixed yesterday and today as it has been doing so for the whole of this week. Ever since gold broke through the range between 1250 and 1263 and burst through the range top at 1263, it has managed to remain above 1263 but on the other hand, it has not been able to make much progress either. The impending rate hike in the US has proved to be a dampener on the gold price as investors expect funds to be moved out of gold and into the USD if and when the rate hike happens. The demand for gold from Asia has also been falling recently with gold demand in India falling by about 40% while the demand from China has fallen by about 25%. This has also managed to keep a lid on the price of gold and yesterday, we saw the price make headway towards 1272 but promptly fell back down to 1267 on return of USD strength and it sits at 1270 as of this writing.http://www.fxempire.com/news/commodities-news/gold-looks-primed-break-367965.
The break of range in gold helped gold close higher than the to of the range , which closed at $1275.90 per ounce.
As we know the correlation between gold and AUDUSD is very positive and the was no real change in closing price for the AUDUSD as the pair closed @ 0.75989. We also saw a slight increase in buyers and a decrease in sellers , uptick in non-commercial positions , unchanged weekly close price, bullish.