HXPM Gold market reviews on Mar. 21st, 2011: Gold is still staying rebound during the finishing process

Daily Gold Review: http://www.hx9999.com/en/trend_639.html

Market Reviews of the Pervious Day:

During the NY session on 18 March, the President of European Central Bank�Jean-Claude Trichet is keeping high alert to the inflation and insist that is the point of view.The euro continues leading the non-US to higher position. The Fed bought dollars in the foreign exchange market and sell out the yen that made the rate of yen to US dollars still keeping down trend. The closing rate is keeping at 80.60 nearby.

Gold closed higher on March 18 which provides gold hedging demand of investors.As the Japan's nuclear crisis and the intervention of Group of Seven�on the yen's exchange rate are overshadowed the impact of the ceasefire in Libya.

Key Economic Data and Events:

Japan's public holiday;

GMT+8 16:00 France purchasing manager index services (Mar).

GMT+8 22:00 America existing home sales (Feb).

Gold:

Gold opened at1404.31USD on 18 Mar, with intra-day Low at 1402.37USD and intra-day High at 1423.95USD, eventually closing at1418.72USD. Intra-day range of 21.58USD was seen.

Gold rebounded on Friday continued up the rhythm, the system temporarily stops the previous day moving average figure, but still belongs to adjust the daily pattern, and adjust the structure and did not become clear. Trend was chaos. Gold headed upwards from the bottom of the moving ranges on Friday, temporarily staying on the MA system. But adjustment is needed on the day line.The adjustment for the structure did not go well. The trend is still in a muddle.

The price of gold is strongly repeated keeping at a high level because of the fake downward adjustment and the sudden events in the market.
Only on the technical adjustment and after news are stable will make the trend of gold price more orderly and stable.

We connect its low of 22nd October,2010 and 28th January 2011, and then its peaks on 7th December,2010 as one channel,the price of gold on last Friday had a downward movement after touched this channel. Before having upward movement to 1424 USD, the gold price is still rebounded during the downward movement.

Currenly the upper resistances should be 1424 and 1433 USD, while lower supports should be 1404 and 1383 USD. Gold might return to the wide range of 1440-1308 USD.

Trading suggestions:

Oscillation pattern. Investors should keep cautious on trading, position should reduced appropriately. The price is currently seen as upward rebound during the downward process.