Gold retreated after ratcheting high last week. Early in the week price was supported by the Lybia’s uprising. Oil futures breached 104 USD which almost reached the high before the 2008 Financial Crisis, on the anxiety toward supply.
Most of the news about te Lybian conflict was not able to be confirmed immediately, that gold trembled at the high within the week. Started from Monday 1,414 USD, gold added 26 USD from 1,409 USD low to 1,435 USD high on Tuesday, breached the 1,430 resistance and settled in a long bullish candlestick. On Wednesday price tested higher to 1,440.30 USD but could not break through the stronger resistance at 1,450 USD, closed at 1,432 USD. Adjustment of 26 USD took place from 1436 to 1410 USD on Thursday. While in the last trading day gold floated within the range of 1,415-1,430 USD, closed at 1,427.80 USD, slightly below 1,430 USD. The trend became more intangible in the short term.
Differed from gold silver was still heading upward. Stepping up form Monday 33.275 USD silver reached its weekly high on Friday at 35.55 USD, with a increment of 3.275 USD. The commodity had risen almost 10% over the week because as reduction in stock and adding investment buying led to unbalance between demand and supply. Investors are still positive towards the commodity that price was expected to reach 50 USD historical high.
Retreat of the greenback was also a supporting factor for prices of the two metals. The U.S. Dollar Index adjusted to the weekly lowest of 76.275 on Friday. Elevated oil price discouraged confidence in economic recovery. The U.S. Federal Reserve was not likely to increase Interest rate, or even might carry out further QE policy, bringing pressure to the dollar.
Technicallly silver may test 38 USD this week. It is expected to settle at around 33-36.50 USD with a 10 % weekly increment. Investment demand and risk would continue to increase. Meanwhile investors should notice any intervene action from the officials or the exchange which could reverse the trend. On the other hand the upside momentum of gold is insufficient at the moment, that solid adjustment may took place if the Lybia’s situation eases. The weekly range is expected to be within 1,410-1,440 USD.
No comments:
Post a Comment