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.