GOLD

FUNDAMENTALS

Gold prices surged higher in Boxing Day session underpinned by soaring crude oil prices and weakening dollar. Geopolitical tensions also increased the safe haven demand for the precious metal. Trading volumes were thin, however, with U.K. precious metals markets closed for the post-Christmas Boxing Day and many U.S. traders and investors away, or keeping light positions, due to year-end holidays. Gold futures for February delivery at COMEX climbed higher by $13 to close the session at $829.5 an ounce. The contract saw the highs of  $830.2 an ounce during the session.

The dollar weakened against its major rivals in thin trading conditions on Wednesday. The dollar index, fell for a third day, down 0.6% to 77.14, the lowest point since Dec. 17. The euro was trading at $1.4502, up from $1.4403 late Monday.

Geopolitical tensions also increased the demand for gold as safe haven investment with the escalating Turkish-Kurdish conflict. Turkish warplanes attacked Kurdish rebel camps in northern Iraq on Wednesday, according to the media reports.

TECHNICALS

Bullish Marubozu pattern shows the dominance of bulls. The prices closed well above short term and medium term EMAs, which supports bulls. MACD is running upwards in positive territory, showing increasing bullish momentum. Stochastic is heading upwards in overbought region. Prices are likely to remain volatile with bullish bias.

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