12.12.201405:21 Forex Analysis & Reviews: Forecast on Gold For December 12, 2014

The yellow metal prices drifted after the publication of the U.S. jobs and retail sales. Today, the focus has shifted to PPI, core PPI, and prelim University of Michigan consumer sentiment. The prices took support at 21hrsma and $1,215.00. The Russian central bank decision supported the prices throughout the day. The Russian central bank raised interest rates to 10.50%. The metal made a double top at $1,237.90 and corrected a bit at yesterday's session. Ahead of the U.S. Federal Reserve meeting next week, the metal is looking mildly strong. The Federal Open Market Committee is expected to undertake monetary policy review at a 2-day meeting next week 16-17 December, 2014. The policy meeting will be keenly watched for any hints on the timing of the interest rates hike. The safe buying will trigger above $1,240.00. At yesterday's session, we recommended selling below $1,223.00 and it indeed gave good money. The prices successfully held at the support of a 2-week trend line; they are consolidating above it. In case if the prices fall below the trend line, we can expect $1,212.00 and $1,209.00 to act as other support levels.

Strong momentum only above $1,240.00.

Double top is at $1,237.90.

Panic selling will take place below $1,209.0 at $1,200.00 and $1,192.00 levels.