The pair was able gold / U.S. dollar to remain above the level of 1685 with the decline in concerns about global growth, which continued to attract investors. The recent weakness in the U.S. dollar provides support for gold.
Gold markets rose from 1625.64 to 1695 within 3 weeks. But, the upside movement struggling to penetrate the level of 1695 during the last four sessions. As a result, the pair bounces between 1685 and 1695 where we do not have a strong catalyst for a breakthrough in any direction.
Yesterday, the report showed issued by the “National Association of Realtors” that existing home sales fell 1% in December, and figures from the Federal Reserve Bank of Richmond revealed that industrial composite index fell to -12 from 5.
Today, participants will be watching the market news coming from the United States. House of Representatives will vote today to suspend the debt ceiling by extending borrowing power of the federal government until May 19. In the meantime, key levels that must be monitored will be within the existing area of consolidation (1685 and 1695).