{"id":17243,"date":"2010-12-23T08:34:06","date_gmt":"2010-12-23T13:34:06","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=17243"},"modified":"2010-12-23T08:34:06","modified_gmt":"2010-12-23T13:34:06","slug":"low-volatility-characterizes-end-of-year-trading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/12\/23\/low-volatility-characterizes-end-of-year-trading\/","title":{"rendered":"Low Volatility Characterizes End of Year Trading"},"content":{"rendered":"<p><strong>By Russell Glaser <\/strong><\/p>\n<p>Gold prices were relatively unchanged yesterday as the commodity  traded in a tight range. Yesterday\u2019s trading had low volatility and  light volume that characterizes <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2010\/12\/22\/gold-prices-climbing-despite-year-end-trading-conditions\/\">end of year trading<\/a>.<\/p>\n<p>The price of spot gold fell marginally to $1,387.36 after opening the day at $1,389.31.<\/p>\n<p>During yesterday\u2019s trading price movements were subdued with little volatility as the price of <a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/12\/In-Depth-Analysis-The-Impact-of-Gold-Trading1.pdf\">spot gold <\/a>moved between an $8 price range. The 20-day Average True Range is more than twice that at 17.<\/p>\n<p>Many traders are attempting to balance their funds and taking risk  off the table as the New Year approaches, booking gains in the commodity  that is up more than 25% this year. The open interest in the number of  Comex gold future contracts has dropped to 582, 133 lots from 650,764 in  early November.<\/p>\n<p>The movement in the dollar has also limited the volatility of gold  prices.  The EUR\/USD traded in a tight range yesterday, closing down at  1.3112 after opening the day at 1.3133. Gold prices often take direction  from the dollar\u2019s movement as a stronger USD makes gold prices <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2010\/11\/22\/identifying-the-long-term-trend-of-gold\/\">more expensive <\/a>for those traders who do not hold dollars.<\/p>\n<p>Volatility may pick up this afternoon with the release of US Core  Durable Goods Orders as well as weekly unemployment claims. Both are  scheduled for release at 13:30 GMT. US New Home Sales are also due out  at 15:00 GMT. Better than expected numbers may strengthen the dollar and  in turn traders may bid the price of spot gold lower. The next support  level rests at a rising support line that comes in today at $1,364.<\/p>\n<p><span style=\"text-decoration: underline;\"><em><strong><a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">Forex Market Analysis provided by ForexYard. <\/a><\/strong><\/em><\/span><em><strong><a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\"><br \/>\n<\/a><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                                                                                                                                                                                                                          may           not          be                                 suitable                 for               all                                                       investors.                             There                     is       a                                                                                           possibility                                   that                                             you                             could                                        sustain  a                  loss                         of          all                    of                        your                                                                                   investment           and                                                                     therefore         you                                                        should               not                                         invest                                       money                 that                     you                                                     cannot                                     afford     to                                               lose.            You                                                  should                    be                           aware                 of                                   all                       the                      risks                                                                     associated                          with                                  Foreign                                              Exchange                                                       trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many traders are attempting to balance their funds and taking risk off the table as the New Year approaches, booking gains in the commodity that is up more than 25% this year. The open interest in the number of Comex gold future&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-17243","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/17243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=17243"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/17243\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=17243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=17243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=17243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}