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.
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