Outlook: Gold approached higher to the historical high on Tuesday, indicating the start of another upside trend in the medium term.
Market Reviews of the Pervious Day:
During NY session on 1 Mar, the greenback fluctuated while EUR and the sterling were under technical pressure. The U.S. manufacturing industry extended sharply in February. Federal Reserve Chairman Ben Bernanke commented inflation in the state to be mild. 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.
Bernanke’s monetary policy report to the Congress said inflation in the U.S. economy should be “temporary” and “ralatively modest”. Federal Reserve would continue the the 600-billion bond buying scheme since November last year. Interest rate would remain to be low to stir up economic growth.
Gold closed at its historical high while silver also approached the 31-year high on 1 Mar, supported by the uprising in the Middle East and fears towards increasing inflation. Gold continued trading sideways within wide ranges while the mid-term adjustment may end. It seemed that another upside trend is beginning after certain adjustments.
Key Economic Data and Events:
GMT+8 08:30 Australia GDP (4th Q)
GMT+8 17:28 U.K. Construction Purchasing Managers’ Index (Feb)
GMT+8 18:00 Euro Zone Producer Price Index (Jan)
GMT+8 21:30 Canada Industrial Product Price Index (Jan)
GMT+8 23:00 U.S. Speech of Federal Reserve Chairman Ben Bernanke
Gold:
Gold opened at 1410.85 USD on 1 Mar, with intra-day Low at 1409. 60 USD and intra-day High at 1434.77 USD, eventually closing at 1433.54 USD. Intra-day range of 25.17 USD was seen.
Gold jumped to trigger the historical high on Tuesday, evidencing price kept going along the trend.
Mid-term adjustments ended with the breakthrough of the important resistance. Another upside trend is beginning after certain adjustments. Gold tended to approach upward with sideway movement. Investors should long gold for mid-long term, and adjust the trading strategy gradually.
The upside track of the MA stayed firm, but the short-term adjustment pattern was not consolidated. The current moving range should be 1418-1435 USD.
Trading suggestions:
Gold price jumped overnight. If subordinated adjustments take place in 1-hour chart investors could long aggressively at around 1423 USD, otherwise should long at around 1420 USD.
Silver: partially the circle of rising formed
Silver opened at 33.90 USD on 1 Mar, with intra-day Low at 33.82 USD and intra-
day High at 34.72 USD, eventually closing at 34.69 USD 0.90 USD intra-day range
was seen.
Silver extended its upward trend and breached the 34.33 USD resistant level on Tuesday, closing with bullish candlestick. The commodity continued to renew its record high.
The upside track of the MA remained firm. Silver tended to reach 37-38 USD as it was approaching the upside range started from 24 Aug, 2010.
Trading Suggestions:
The short-term moving range would be 34.30-35.30 USD, stragety of longing at low should be continued. Moderate buying is suggested if price retreats to 34.30 USD. Investors could be more aggressive if adjustments take place in the short run.
No comments:
Post a Comment