HXPM Gold market reviews on Mar. 22nd, 2011: Sideway trading as funds are back to gold market

Daily Gold Review: http://www.hx9999.com/en/trend_642.html

Market reviews of yesterday:

During NY session on 21 Mar, as rish firming again, USD has dropped to the lowest within these 15 months. The Euro rose to the highest level in these 5 months. It is expected ECB will adjust the rate before Fed. USD continues bearing pressure. The Euro rose rapidly under the interest rate was adjusted while US Federal Reserve tends to keep ultra loose monetary policy. It will boost inflation with soaring fuel prices. All these factors made USD not to be a hedging currency as much as before.

The gold closed at a relatively higher price on 21 Mar. The market hedging is likely going upwards by the western countries taking military action against Libya and the stimulation of Japan nuclear crsis thus support the price of gold continued moving upwards on 21 Mar. The siuation in Liyba is getting worst because of the USA and other western countries have an air combat to this region. Moreover, the nuclear crsis of Japan has not been sloved that made alot of investors to buy gold in order to hedge. In addition, gold prices also benifited for lower USD rate and the oil prices rised.

Key Economic Data and Event:

GMT+8 15:15 Switzerland trade balance (Feb)

GMT+17:30 Endland CPI (Feb)

GMT+17:30 England Retail Prices Index (Feb)

GMT+20:30 Canada retail sales (Jan)

GMT+20:30 Canada Core retail sales value of 0.6% / month (Jan)

GMT+20:30 Canada leading indicators (Feb)

Gold:

The gold opened at 1419.56 USD on 21 Mar, with intra-day Low at 1419.56 USD and intra-day High at 1434.71 USD, eventually closing at 1427.44 USD. Intra-day range of 15.15 USD was recorded.

Gold continues rebounding upward movement on Monday. It is good for long-term pacing up but Yen is still under adjustment and the structure of adjustment is not going well. Gold was expected to consolidate temporarily on the range of 1444-1383 USD as the adjustment of downside movement stage.

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.