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 (4th 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
No comments:
Post a Comment