HXPM Gold market reviews on Mar. 1st, 2011: Edged higher, lacking short-term momentum

Daily Gold Review: http://www.hx9999.com/en/trend_607.html

Outlook：Gold edged moderately higher on Monday, as adjustments were still taking place at high. The technical upside track stayed firm while investors were still positive. Strategy of range trade should be continued.

Market Reviews of the Pervious Day:

During NY session on 28 Feb, Eur became more attractive as it was expected that the deviation between interest rates of the U.S. and Europe would extend. Eur rised against the greenback to the 3-week high. Market was alert to the discrepancies in view of inflation between central banks so there was less focus on the situation of the Middle East and the North America. The Minors would continue the trend of moving sideways with strong range volatility for one to two years while the greenback was likely to perform a retracement during the process. In associate with the sideway movements of various currency pairs, the U.S. dollar index performed a sideway movement with downside bias, which conducted as a preparation for its surge and the recovery of U.S. economy after entering the interest rate rising cycle. Prior to the said forecast, the greenback would perform a bearish trend.

Gold edged moderately higher on 28 Feb. Protests in the Middle East spread to Omen and Lybia was still in chaos. The uprising continued to drive some hedging funds into the market. Yet part of the upside gain was offset by profit taking activities before closing. Gold continued trading sideways within wide ranges while the mid-term adjustment may end.

Key Economic Data and Events:

GMT+8 11:30 Australia Announcement of Fed Rate

GMT+8 14:45 Switzerland GDP (4^th Q)

GMT+8 16:30 Switzerland SVME Purchasing Managers Index (Feb)

GMT+8 16:55 Germany Manufacturing Purchasing Managers Index (Feb)

GMT+8 17:00 Euro Zone Manufacturing Purchasing Managers Index (Feb)

GMT+8 17:00 Germany Unemployment Rate (Feb)

GMT+8 17:30 U.K. Manufacturing Purchasing Managers Index (Feb)

GMT+8 18:00 Euro Zone Unemployment Rate (Jan)

GMT+8 22:00 Canada Announcement of Central-Bank Rate

GMT+8 23:00 U.S. Construction Spending (Jan)

GMT+8 23:00 U.S. ISM Manufacturing Index (Feb)

Gold:

Gold opened at 1409.80 USD on 28 Feb, with intra-day Low at 1404. 95 USD and intra-day High at 1416.46 USD, eventually closing at 1410.91 USD. Intra-day range of 11.51 USD was seen.

Gold edged moderately higher on Monday but lacked of momentum. Intra-day range was limit. Price might retreat to the lower of the short-term moving range of 1393-1423.63 USD.

The upside track of the MA stayed firm. The current moving range should be 1393-1423.63 USD.

The mid-term adjustment of gold may end, and bullish trend with sideway trading would trigger. Investors should long gold for mid-long term, and adjust the trading strategy gradually.

Trading suggestions:

Lacking of momentum and continuity, price might retreat to the lower of the short-term moving range of 1393-1423.63 USD. Investors should continue to long at the lower of ranges.

Silver: slightly higher, but upper pressure should be noticed.

Silver opened at 33.38 USD on 25 Feb, with intra-day Low at 33.01 USD and intra-

day High at 34.01 USD, eventually closing at 33.90USD 1.00 USD intra-day range

was seen.

Silver extended upside trend with low volatility along the revert of flag in the 4-hour chart on Monday, closing with short bullish candlestick. Upper pressure from 34.33 USD should be noticed.

The upside track of the MA remained firm. The top and bottom of sideway structure constructed since 16 Nov, 2010 supported the level of 31.22 USD

The upward pattern continued. In short silver could reach 37-38 USD if only it could breach the upside range started from 24 Aug, 2010.

Trading Suggestions:

Investors could buy at around 33.30 and 33.10 USD and continue to long at low. While upper pressure from the level 34.33 USD should be noticed, profit taking tactics was needed

HXPM Gold Weekly Gold Review 110228: Gold tended upward but halted under resistent

Weekly Gold Review: http://www.hx9999.com/en/comment_week_604.html

Supported by the political tension, especially from Lybia, the direction of gold was quite unique last week. The oil price provided another positive factor. The weekly low 90 USD of the New York oil futureswas recorded on Monday but elevated to the 103.40 USD on Thursday, which was almost the level before the financial crisis 2 years ago. Gold kept heading upward in the early of the week. The first resistance 1,420 USD was tested when gold reached 1,418.20 USD on Thursday, but failed under the pressure of selling orders from profit taking. Gold retreated sharply and once broke the phychological support of 1400 USD, and the lowest 1,391.80 USD was recorded. While it closed at 1,402.60 USD, the overall status was not changed. Yet buying was hestitated after the retreat on Thursday. The day low on Friday was 1,399.60 USD and the 1,400 USD level was defensed. As the highest was only 1,411.20 USD within the day, the upside potential should be constrained in the short run.

Beside the jumping of the oil price, the situation of Lybia was also pushing funds into the the gold market. However such kind of positive effects usually only appear at the beginning of similar situation. The trend of last week did not show sustainable buying desire.

Stepping downward, silver performed even weaker than gold last week. 34.30 USD on Monday was almost the highest within the week (34.40 USD on Wednesday). Price slided sideway without sufficient support at high level. The weekly lowest 31.70 USD was recorded on Thursday. A 7.8% cautious adjustment was seen based on this level. Silver closed at 33.30 USD after such such adjustment last Friday.

Technically there was strong resistance around 1,420 USD for gold. Prices struggled within the range of 1,412-1,417 USD in 1-hour chart, and encountered pressure at upper level. The next resistance should be at 1,430 USD while 1,400 USD should be the distinction. A technical negative trend will be formed if gold breaches 1,400 USD in the coming week. The weekly range is expected to be 1,375-1,425 USD. Silver triggered the 34 USD target last week and the current lower support level is 30 USD. The next support would become 28 USD if it breaches the 30 USD level.

HXPM Gold market reviews on Feb. 28th, 2011: Adjusting at high but still heading upward

Daily Gold Review: http://www.hx9999.com/en/trend_605.html

Outlook: Gold continued to adjust on Friday and finally succeeded to rebound. The technical upside track remained firm as investors were still positive.

Market Reviews of the Pervious Day:

During NY session on 25 Feb, there was a slow down in the growth of the U.S. quarterly GDP while consumer confidence improved in the second month. The greenback performed diversely, rising against EUR and pound while falling against yen and CAD. The Minors would continue the trend of moving sideways with strong range volatility for one to two years while the greenback was likely to perform a retracement during the process. In associate with the sideway movements of various currency pairs, the U.S. dollar index performed a sideway movement with downside bias, which conducted as a preparation for its surge and the recovery of U.S. economy after entering the interest rate rising cycle. Prior to the said forecast, the greenback would perform a bearish trend.

Gold rebounded at the closing on 25 Feb. After boosting in the early session, some adjustments took place at high as investors tended to take profit. And also as Saudi Arabia announced to increase the oil supply, the worries towards oil due to the unrest in Middle East were loosened. Gold continued trading sideways within wide ranges while the mid-term adjustment may end.

Key Economic Data and Events:

GMT+8 18:00 Euro Zone Consumer Price Index (Jan)

GMT+8 21:30 Canada GDP (4^th Q)

GMT+8 21:30 U.S. Speech of William C. Dudley of Fed Reserve

GMT+8 21:30 U.S. Personal Income

GMT+8 21:45 U.S. Speech of Eric S. Rosengren of Fed Reserve

GMT+8 22:45 U.S. Chicago Purchasing Managers Index (Feb)

Gold:

Gold opened at 1402.30 USD on 25 Feb, with intra-day Low at 1400.10 USD and intra-day High at 1411.41 USD, eventually closing at 1410.55 USD. Intra-day range of 11.31 USD was seen.

Along with the retreat of oil price, gold tested the lower of the range during the middle of the session, and regressed upward finally. The intra-day range was insignificant, closing with bullish candlestick. The adjustment pattern at high could be found in the 4-hour chart.

The upside track of the MA remained firm. The current moving range should be 1393-1423.63 USD.

The mid-term adjustment of gold may end, and bullish trend with sideway trading would trigger. Investor should long gold for mid-long term, and adjust the trading strategy gradually.

Trading suggestions:

The current moving range should be 1393-1423.63 USD. Investors should continue to long at the lower of ranges.

Silver: remained positive, but upper pressure should be noticed.

Silver opened at 32.17 USD on 25 Feb, with intra-day Low at 32.09 USD and intra-

day High at 33.41 USD, eventually closing at 33.41 USD. 1.32 USD intra-day range

was seen.

Silver rebounded along the revert of flag in the 4-hour chart, closing with medium bullish candlestick.

The upside track of the MA remained firm. The top and bottom of sideway structure constructed since 16 Nov, 2010 supported the level of 31.22 USD.

The upward pattern continued. While the pressure from the level 34.33 USD should be noticed.

In short silver could reach 37-38 USD if only it could breach the upside range started from 24 Aug, 2010.

Trading Suggestions:

Investors could continue to buy with small sizes and long at the low. While the pressure from the level 34.33 USD should be noticed, profit taking tactics was needed

HXPM Gold market reviews on Feb. 25th, 2011: Momentums shifted, widening ranges

Daily Gold Review: http://www.hx9999.com/en/trend_602.html

Price momentums shifted downward on Thursday. It seems that adjustments at high level was taking place. The overall upside trend of MA had not changed.

Market Reviews of the Pervious Day:

During NY session on 24 Feb, market was more alert to the situation of the Middle East. The greenback sinked while Eur hit its 3-week record high. Swiss Franc even breached the record high level. Yen appreciated against but USD and EUR. The Minors would continue the trend of moving sideways with strong range volatility for one to two years while the greenback was likely to perform a retracement during the process. In associate with the sideway movements of various currency pairs, the U.S. dollar index performed a sideway movement with downside bias, which conducted as a preparation for its surge and the recovery of U.S. economy after entering the interest rate rising cycle. Prior to the said forecast, the greenback would perform a bearish trend.

Gold ended in red on Feb 24. Market fluctuated due to rumours of Libyan leader Muammar Gaddafi being shot, easing the worries about oil supply. Gold plunged at the latest of the NY session as preservation funds left and oil price retreated. The rising trend in the past 7 days came to an end with the red close. Gold continued trading sideways within wide ranges while the mid-term adjustment may end.

Key Economic Data and Events:

GMT+8 17:30 U.K. GDP (4^th Q)

GMT+8 18:30 Switzerland KOF Leading Indicator (Feb)

GMT+8 21:30 U.S. GDP (4^th Q)

GMT+8 22:55 U.S. University of Michigan Consumer Sentiment Index (Jan)

Gold:

Gold opened at 1398.74 USD on 23 Feb, with intra-day Low at 1395.50 USD and intra-day High at 1418.07 USD, eventually closing at 1402.50 USD. Intra-day range of 22.93 USD was seen.

Gold moved along the lower of the range of 1408-1423.63 USD on Thursday. Momentums were forced to shift as price jumped at the close order, closing with medium bearish candlestick.

Gold should experience certain adjustments as said in the previous day. Yet the overall upside pattern of te MA had not changed. The current range widened to 1393-1423.63 USD.

The mid-term adjustment of gold may end, and bullish trend with sideway trading would trigger. Investor should long gold for mid-long term, and adjust the trading strategy gradually.

Trading suggestions:

The short-term range widened to 1393-1424 USD. Investors should continued to long at the lower of ranges. Trading sizes should be contracted as no rallying pattern was seen at high level in the short run at the moment.

Silver: upward trend unchanged but uncertainties in the short run

Silver opened at 33.54 USD on 24 Feb, with intra-day Low at 31.76 USD and intra-

day High at 33.76 USD, eventually closing at 32.17 USD. 2.00 USD intra-day range

was seen.

Silver retreated dramatically on Thursday, closing with long bearish candlestick. Yet the upward trend of the MA remained unchanged. The top and bottom of sideway structure constructed since 16 Nov, 2010 supported the level of 31.22 USD.

The movement of 4-hour chart composed the shape of reverting of the flag, reducing the downward pressure and indicating the probability of rebound. At the moment the trend was not clarified.

The commodity would be favoured if some subordinated pattern of the MA could develop around the level 32.20 USD. Else some adjustments might take places.

In short silver could reach 37-38 USD if only it could breach the upside range started from 24 Aug, 2010.

Trading Suggestions:

Investors could test the level of 32 USD with small buying orders. The long-term strategy at the lower of ranges should continue while profit taking tactics was needed. The next testing level could be 31.22 USD if the flag shape failed to revert.

HXPM Gold market reviews on Feb. 24th, 2011: Range moved upward, long prevailed

Daily Gold Review: http://www.hx9999.com/en/trend_600.html

Gold breached the orginal range and confirmed its strength on Wednesday. Technical support directed more buying. Expected inflation and the massive investment funds would also boost the upside potential of the commodity.

Market Reviews of the Pervious Day:

During NY session on 23 Feb, the greenback sinked due to the tensive situation in the Middle East. That the Swiss Franc almost broke the record high while both Eur and GBP elevated. On the whole adjustments continued. Market focused on the Ireland election on Feb25. The technical trend of currency would extend. The Minors would continue the trend of moving sideways with strong range volatility for one to two years while the greenback was likely to perform a retracement during the process. The U.S. stock market had been decending sideway, preparing rooms for the rebound after confirming te economic recovery. It was expected that the bearish trend of the dollar would continue while the others were experiencing some adjustments until the interest rate begins to rise.

Gold closed in green on Feb 23. The political tension in the Middle East was pushing hedging funds into the gold market. Expected inflation and the massive investment funds would also boost the upside potential of the commodity. Gold continued trading sideways within wide ranges while the mid-term adjustment may end.

Key Economic Data and Events:

GMT+8 15:00 German GDP(4^th Q)

GMT+8 18:00 Euro Zone Industrial Business Climate Index (Feb)

GMT+8 21:30 U.S. Durable Orders (Jan)

GMT+8 21:30 U.S. Weekly Initail Jobless Claims (Feb 19)

GMT+8 23:00 U.S. New Residential Sales (Jan)

Gold:

Gold opened at 1398.74 USD on 23 Feb, with intra-day Low at 1395.80 USD and intra-day High at 1416.34 USD, eventually closing at 1411.78 USD. Intra-day range of 20.54 USD was seen.

On Wednesday a breakthrough was seen after rallying within the range, closing with a medium bullish candlestick. The current range has moved upward to 1408-1423.63 USD.

The mid-term adjustment of gold may end, and bullish trend with sideway trading would trigger. Investor should long gold for mid-long term, and adjust the trading strategy gradually.

Trading suggestions:

The range of gold would shift to 1408-1425 USD in short term, range trades should be continued. Trading sizes should be limited as at the moment no rallying pattern was seen at high level in the short run.

Silver: rallied at high, range narrowed.

Silver opened at 33.06 USD on Feb 23, with intra-day Low at 32.71 USD and intra-

day High at 33.78 USD, eventually closing at 33.56 USD. 1.07 USD intra-day range

was seen.

Silver rebounded from the horizontal price movement constructed since Nov 16, 2010. The upward trend of the MA continued.

The wide range should be placed within 32.20-35 USD. The commodity would be favoured if some subordinated pattern of the MA could develop around the level 32.20 USD. Else some adjustments might take places.

In short silver could reach 37-38 USD if only it could breach the upside range started from 24 Aug, 2010.

Trading Suggestions:

The current range should be 32.20-35 USD. Investors should continue longing within ranges.

HXPM Gold market reviews on Feb. 22nd, 2011: The gold surged higher

Daily Gold Review: http://www.hx9999.com/en/trend_596.html

Outlook: Extending the bullish trend on Monday, the target price of gold located at 1423 USD after breaching further resistance level. Technical bids and the tension of Middle East provided support to the gold price.

Market Reviews of Yesterday:

During NY session on 21, the greenback steadied, despite the upgraded tension of Middle East, the FX market was not as volatile as other markets. The Euro, cable, as well as the Minors came across technical resistance and consolidation was likely to occur. The Minors would continue the trend of moving sideways with strong range volatility for one to two years while the greenback was likely to perform a retracement during the process. In associate with the sideway movements of various currency pairs, the U.S. dollar index performed a sideway movement with downside bias, which conducted as a preparation for its surge and the recovery of U.S. economy after entering the interest rate rising cycle. Prior to the said forecast, the greenback would perform a bearish trend.

The gold surged high at the closing of 21 Feb and continued the bullish trend. The tension of Middle East together with the bearish greenback pushed the gold price to the high of 1400 USD / ounce. The uncertain geopolitics yielded a huge demand of hedging, subsequently, the gold continued edging high. In case the uncertainty of geopolitics heated up, the gold and silver would rise further up. Gold continued trading sideways within wide ranges while the mid-term adjustment may end.

Key Economic Data and Events:

GMT+8 15:15 CH Trade Balance (Jan)

GMT+8 21:30 CA Retail Sales (MoM) (Dec)

GMT+8 23:00 US Consumer Confidence (Feb)

Gold:

The gold opened at 1388.45 USD on 21 Feb, with intra-day Low at 1388.45 USD and intra-day High at 1408.38 USD, eventually closing at 1406.49 USD. Intra-day range of 19.93 USD was seen.

The gold continued surging high on Monday, long bullish candle stick was seen and range was further widened.

During the Asian session, the gold retreated slightly after ratcheting high once again.

The short-term range was forecasted as 1393-1410 USD.

The mid-term adjustment of gold may end, and sideway trading with upside bias would trigger. Investors should long gold for mid-long term, and adjust the trading strategy gradually.

Trading Suggestion:

The range of gold would shift to 1393-1410 USD in short term. Investors should continue the strategy of longing gold; in the event that consolidation in the upside occurred, more profitable opportunities would trigger. Further, the next range would be 1408-1423 USD if the previous said range got breached. In the contrast, investors should be cautious that retracement might occur.

Silver: With sufficient rooms in the upside, silver speeded up the surge.

Silver opened at 32.39 USD on 21 Feb, with intra-day Low at 32.39 USD and intra-day High at 34.01 USD, eventually closing at 33.89 USD. Intra-day range of 1.62 USD was recorded.

Silver speeded up the surge on Monday; the bullish trend got recovered after the ending of overall consolidation.

Currently rooms for surging was opened up, however investors should be cautious that resistance located above 35 USD, from the upside commencing from 24 Aug 2010. The next resistance level located at 37-38 USD as forecasted.

Following the pull up in the short run, in the event that consolidation in the upside occurred, more profitable opportunities would trigger.

Trading Suggestions:

With rooms for surging opened up, investors should continued the strategy of longing silver; and the support below was 33.30 USD. In the event that consolidation in the upside occurred, more profitable opportunities would trigger. Investors should be cautious that retracement might occur. The more dependable strategy was to long silver near key support levels.

HXPM Gold Weekly Gold Review 110221: Unrest situation among the Middle East supported gold to reboun

Weekly Gold Review: http://www.hx9999.com/en/comment_week_593.html

Gold trended upward in the last trading week. The range stepped up daily from the weekly lowest 1,353.70 USD on Monday and hit the weekly high 1,392 USD on Friday. The difference exceeded 38 USD. With the close at 1,389.90 USD on Friday, gold had almost appreciated for 34 USD within the week.

Gold rose modestly everyday last weekely. The daily ranges were merely around 10 USD while the largest was 16 USD on Tuesday. Such uncommon pattern might count for two conditions: market was positive mainly because of the unrest in the Middle East thus gold had closed in green for the whole week; yet investors were still hestitate to buy in bulk and limited the upside strength of the yellow metal.

The situation of Egypt seemed to be clam down at the moment. However the strikes had spread to other Middle East countries and brought more serious conflicts. The chaos pushed some short-term funds into the gold market. While the political unrest among the Middle East and African countries might not be settled within 2 or 3 months, it is expected that gold would keep absorbing those hedging funds.

The price of silver was another fovorable factor to gold. Silver climbs everyday as gold last week while some ranges of silver was much larger. Say on Thursday silver rose to the high of 31.8 USD from the low of 30. 50 USD, more than 4.2%; again on Friday it rose from 31.60 USD to 32.90 USD, more than 4%, hit the 32-year record high as well. The potential of silver provided support to the rebound of gold.

Some investors expected that the the change in fund liquidity might have negative effect on gold, leading to some short orders last week. The People’s Bank of China announced to raise the reserve ratio of banks again could reduce funds from the country. There was also noises among the carrying out of the QE3 in the U.S. The cost and liquidity factors might account for the less buy orders compared with last year.

Technically gold is likely to hit the levelof 1,400 USD again. This would bring the preivous downside trend to an end, and support the gold to test the 1,430 USD level. The weekly range was expected tobe between 1,360 USD to 1420 USD. It is very likely to reach 1,400 USD but investors should notice whether the dollar would change the current status.

Supported by both investment and real buying orders, technically silver is also heading upward. Yet at the 32-year high level, there should be constraints on the trend. At the moment the target should be placed at the vital psychological level 35 USD.

HXPM Gold market reviews on Feb. 21st, 2011: Gold climbed to the upper of the short-term range

Daily Gold Review: http://www.hx9999.com/en/trend_594.html

Outlook：Gold climbed again last Friday, rallied at the upper of the short-term range. Technical buying orders and the situation of the Middle East gave support to the commodity.

Market Reviews of the Pervious Day:

During NY session on 18Feb, Eur appreciated as the expectation of raising interest rate offset the fear toward the debt crisis. The rumours that the European Central Bank will purchase the Portugral government bond also loosened the worries, and the dollar index slided.

The technical trend of currency would extend. The Minors would continue the trend of moving sideways with strong range volatility for one to two years while the greenback was likely to perform a retracement during the process. The U.S. stock market had been decending sideway, preparing rooms for the rebound after confirming te economic recovery. It was expected that the bearish trend of the dollar would continue while the others were experiencing some adjustments until the interest rate begins to rise.

Gold closed in green on Feb 18. Within the week the yellow metal rose 2.1%. It was the third consecutive week of closing in green though China just announced the further tightened monetary policy. While the market focus was on the situation of the Middle East, gold continued trading sideways within wide ranges while the mid-term adjustment may end.

Key Economic Data and Events:

GMT+8 16:30: German Purchasing Managers Index (Feb)

GMT+8 17:00  Euro Zone Purchasing Managers Index (Feb)

GMT+8 17:00 German IFO Business Climate Index (Feb)

Gold:

Gold opened at 1384.23 on 16 Feb, with intra-day Low at 1381.87 and intra-day High at 1391.76 USD, eventually closing at 1389.67 USD. Intra-day range of 9.89 USD was seen.

The gold kept going up on Friday, triggered 1386 USD, and closed with small bullish candle stick. The relative range is constrained

The next resistance should be at the level of 1393 USD.

In the short run the gold could not breach the level of 1381 USD, or the short-term upside pattern would revoke.

At the moment the short-term wider range should be 1379-1393 USD, while the narrow range should be 1386-1393 USD.

Trading suggestions:

At the moment the short-term wider range should be 1379-1393 USD, while the narrow range should be 1386-1393 USD. Before the gold could trigger the level of 1393 USD, buyers should limit the sizes of orders to avoid shocks within the narrow range of 1386-1393 USD. Trades would be favoured if adjustments take places at high level.

Silver: accelerated upward trend, resistance broken

Silver opened at 31.76 USD on 17 Jan, with intra-day Low at 31.63 USD and intra-

day High at 32.86 USD, eventually closing at 32.65 USD. 1.23 USD intra-day range

was seen.

The silver kept going up last Friday for the strong investment and industrial demand. Adjustment ended and the upside pattern restored.

Further upside room could be seen. The resistance should be distributed at around 37-38 USD, whereas the support should be at the level of 32.20 USD.

Long orders would be favoured if adjustments take places at high level after price boosts in the short term.

Trading Suggestions:

Further upside room could be seen. Investors should continue the long-term strategy. The support level should be at 32.20 USD. Long orders would be favoured if adjustments take places at high level after price boosts in the short term.

HXPM Gold market reviews on Feb. 18th, 2011: Gold extends upward trend

Daily Gold Review: http://www.hx9999.com/en/trend_591.html

Outlook: Supported by the technical buying orders and the discouraging U.S. economic data, gold breached upward with bullish trend on Thursday.

Market Reviews of Yesterday:

During NY session on 17Feb, , the USD was further weakened with the lower yield of the U.S. government bond as well as some technical effects. While the tension of the Middle East kept pushing up the Swiss Franc. The technical trend of currency would extend. The Minors would continue the trend of moving sideways with strong range volatility for one to two years while the greenback was likely to perform a retracement during the process. The U.S. stock market had been decending sideway, preparing rooms for the rebound after confirming te economic recovery. It was expected that the bearish trend of the dollar would continue while the others were experiencing some corrections until the interest rate begins to rise.

Gold closed at new high yesterday. Fear towards inflation extended. With the supported of the technical buying orders and the discouraging U.S. economic data, gold continued trading sideways within wide ranges while the mid-term adjustment may end.

Key Economic Data and Events:

GMT+8 15:00: German Producer Price Index (Jan)

GMT+8 15:45 France Production Prospect Index (Feb)

GMT+8 17:30 U.K. Retail Sales (Jan)

GMT+8 20:00 Canada Consumer Price Index (Jan)

French G20 Meeting

Gold:

Gold opened at 1374.76 on 16 Feb, with intra-day Low at 1374.05 and intra-day High at 1385.01 USD, eventually closing at 1384.24 USD. Intra-day range of 10.96 USD was seen.

The gold triggered upward on Thursday, closing with bullish candle stick. The ascending pattern was established. Yet technically two resistance levels were placed at 1386 and 1393.

The gold could not breach the 1376 USD level with upward bias, the trend would reverse in the event of breaching that level in short-term.

Current range would shift to 1379-1393 USD.

The mid-term adjustment of gold may end, and bullish trend with sideway trading would trigger. Investor should long gold for mid-long term, and adjust the trading strategy gradually.

Trading suggestions:

The range of gold would shift to 1379-1393 USD in short term, range trades should be continued. The said risk of reversion in the knee point of 1386 USD should be noticed. Investors should avoid to long at the high levels.

Silver:

Silver opened at 30.64 USD on 17 Jan, with intra-day Low at 30.56 USD and intra-

day High at 31.79 USD, eventually closing at 31.70 USD. 1.23 USD intra-day range

was seen.

Silver triggered 31.22, the 31-yesr record high, on Thursday. The overall adjustment came to an end, revising the upward pattern. However, the further potential was not distinct. Investors should notice the upper of the upward range on 16 Nov, 2010. the current resistance should be at the level of 32.20 USD.

Trade would be favoured if price adjusted at high levels after boosting in the short term.

Trading Suggestions:

The range of silver would shift to 31.20-32.20 USD in short term, range trades should be continued.