Outlook: Gold continued to rise and renewed the historical high on Wednesday. The technical upside pattern stayed firm. Investors remained positive towards gold and tended to long at essential levels.
Market Reviews of the Pervious Day:
During NY session on 2 Mar, market focused on the European Central bank meeting on the next day. EUR lifted to its 4-month high 1.3889 USD on expectation ECB would increase interest rate. The sterling also reached its 13-month high 1.6342 USD with positive economic data.
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 settled at the historical high at the closing on 2 Mar. The Lybia’s uprising had been droving up oil price and increasing investment demand for gold. Gold continued trading sideways within wide ranges while the mid-term adjustment may end. Another upside trend was beginning after certain adjustments.
Key Economic Data and Events:
GMT+8 08:30 Australia Balance of Trade (Jan)
GMT+8 16:15 Switzerland Retail Sales (Jan)
GMT+8 16:55 Germany Services Purchasing Managers’ Index (Feb)
GMT+8 17:00 Euro Zone Services Purchasing Managers’ Index (Feb)
GMT+8 17:30 U.K. Services Purchasing Managers’ Index (Feb)
GMT+8 18:00 Euro Zone Real GDP (4th Q)
GMT+8 18:00 Euro Zone Retail Sales (Jan)
GMT+8 20:45 Euro Zone Interest Rate Decision of ECB
GMT+8 21:30 U.S. Unit Labour Cost (4th Q)
GMT+8 21:30 U.S. Weekly Initial Jobless Claims (26 Feb)
GMT+8 23:00 U.S. ISM Non-Manufactoring Index (Feb)
GMT+8 23:00 U.S. Speech of Federal Reserve Chairman Ben Bernanke
Gold:
Gold opened at 1433.05 USD on 2 Mar, with intra-day Low at 1427. 91 USD and intra-day High at 1440.30 USD, eventually closing at 1434.51 USD. Intra-day range of 12.39 USD was seen.
Though retreated moderately after large gain, gold still settled at the record high. Ranges narrowed and record renewed in two consecutive days, evidencing the continuity of the trend.
Price triggering the important resistant level signified the end of adjustments in the mid-term. Another upside trend was 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. The current moving range should be 1424-1440 USD.
Trading suggestions:
Investors should continue longing strategy at around 1424-1428 USD.
Silver: support tested at high
Silver opened at 34.68 USD on 2 Mar, with intra-day Low at 34.27 USD and intra-
day High at 34.97 USD, eventually closing at 34.67 USD 0.70 USD intra-day range
was seen.
Silver retreated after gain on Wednesday, testing the supporting level of 34.30 USD which was composed by certain buying.
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 34.20-35.30 USD, stragety of longing at low should be continued. Moderate buying is suggested if price retreats to 34.30 USD.
No comments:
Post a Comment