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(4th 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.
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