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.