Gold closed in green on Friday. The performance was unstable under adjustments. Rising tensions among the Middle East and the North Africa were still adding hedging demand for the commodity.
Market Reviews of the Pervious Day:
During NY session on 4 Mar, EUR breached its 4-month high to 1.40 USD as the slight increase in the U.S. jobs data failed to impress the market. The greenback tended to fall in the coming week for the possibility of interest hike of the European Central Bank. The improvement in jobs data was regarded as a benchmark for the Federal Reserve to end QE2 and tighten its monetary policy with higher interest rate.
Gold closed in green on 4 Mar while silver triggered its 31-year record high. The repeated conflicts in Lybia and increasing tensions in the North Africa kept bringing hedging demand, driving up prices of gold and silver. The weakness of the greenback was also a supportive factor for the two precious metals. Gold continued trading sideways within wide ranges while the mid-term adjustment may end. It is believed that the upside trend would continue. The retreat should be a normal market behavior during the period of consolidation.
Key Economic Data and Events:
GMT+8 13:00 Japan Leading Indicator (Jan)
GMT+8 17:30 Euro Zone Sentix Investor Confidence Index (Mar)
GMT+8 19:30 Euro Zone Speech of European Central Bank head Jean-Claude Trichet
GMT+8 21:00 U.S. Speech of Federal Reserve Bank of Atlanta President Dennis P. Lockhart
GMT+8 21:30 Canada Building Permits (Jan)
GMT+8 22:15 U.S. Speech of President of the Federal Reserve Bank of Dallas Richard W. Fisher
Gold:
Gold opened at 1415.76 USD on 4 Mar, with intra-day Low at 1413.86 USD and intra-day High at 1432.43 USD, eventually closing at 1430.87 USD. Intra-day range of 18.57 USD was seen.
With technical support constructed since 28 Jan gold rebounded on Friday, breaching the narrow range of 1410-1424 USD again.
Last Thursday downside momentum bacame stronger. Gold performed unsteadily under adjustments.
The level of 1424 USD provided suppot, yet price failed to stay beyond 1433 USD and break through the upper of the flag.
The technical trend remained positive and firm. But sideway adjustments at high would continue.
Trading suggestions:
Narrow moving range should be 1425-1440 USD while wide range should be 1410-1440 USD. During the period of consolidation, investors should continue the range trades strategy.
Silver: rised on the flag continuation support
Silver opened at 34.22 USD on 2 Mar, with intra-day Low at 34.20 USD and intra-
day High at 35.62 USD, eventually closing at 35.60 USD. Intra-day range
of 1.42 USD was seen.
Supported by the flag continuation, silver breached its 31-year record high last Friday, approaching the upper of the upside track constructed from 24 Aug, 2010.
The technical trend remained positive and firm. Yet silver was expected to reach 37-38 USD if only it could trigger the upside track constructed from 24 Aug, 2010.
Trading suggestions:
Moving range of silver narrowed to 34.97-35.60. Investors should continue long-term strategy with petite buying at the lower of ranges. If adjustments take place at high that price gradually returns to the lower of ranges, investors could long more aggressively.
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