Last week the world's focus was the crisis of Japan nuclear accident after the earthquake. Although the damages after magnitude 9 quake are big,the impact is relatively short. If the Fukushima nuclear power accident goes worst and the radiation leaks out, there will be a serious and long impact not only to Japan but also to the countries surrounded and gobally.�As Japanese Prime Minister said that if radiation leaks out that will destroy the whole East of Japan which means not only the neclear power station will exploded but also the wole East of Japan will bomb out. Moreover, the food and water source will be poulluted if the radiation is occoured. All the residents and organization of East of Japan need to evacuate. immediately, this Region have to wait several decades before it activated again.
Financial markets's response to the nuclear crisis and the earthquake of Japan can be seen on the Japanese major stock markets and rate of Japanese yen Japanese stock market fell sharply after the earthquake, the Japanese yen fell first and then moved upwards. the market's view for foreign investors in Japan are expected to get the funds back to the country. The yen has been sought after, the rate of USD to Yen fell down to 76.06 and was a low record. But after the Japanese central bank and the Group of Seven sold yen to stop the yen's rally, the USD against the yen rebounded from the low of 76.06 to 82.
Gold price is moving to its high then to its low under the rate of Yen is fluctuated and under this kinf of market. Last Monday the gold market was responsed good as the rate of Yen. The funds moved to the gold market as the USD had weakened compared to Yen. Last Monday, the highest price of gold on the trial1,430.40 USD, but restricted by the resistance at 1430USD then moved downwards repeatedly . There was an significant downward movement�on Tuesday, the price of gold from the highest of 1,426 USD to dropped to the lowest of1,380.70USD. The moving range was almost 46 USD. Gold was only moved within this range in the follwing trading day.The price for Wednesday and Thursday was repeatedly at low .For Friday, there was a slightly upward movement. but the movement range is still between 1,404 and 1,426 USD, closing at 1,418.20USD.
The trend of Silver is similar to Gold which fell on Tuesday while the price of silver fell from the 33.65 to 35.55USD, nearly 1.9USD adjustment. The moving range is over 5% compared to Gold which only had 3 % at the same day. Silver have particularly popular in the beginning of this year, but after the earthquake in Japan there have a negative impact on the international economy and that's why the demand for silver is reduced.
People's Bank of China enhance the bank's RMB deposit reserve ratio last week, the aim is to tighten up monetary policy, This will reduce domestic investment demand from China. Recently the demand for gold and silver investment is mainly demand of investment. When the prices remain high then this part of demand is decreasing.
From a technical trend, the price of gold and silver has resistance at its high then moved downwards Last week's rebound does not end the its low. But the political situation in the Middle East and the earthquake of Japan produced uncertainty, "uncertainty" makes gold market as hedge funds, these funds were temporarily support the gold and silver.
The changes in gold prices still depends on it's neclear crisis stabilization and resolved then followed by the trend of yen. Investors should be consolidated U.S. dollar against other currencies to see the dollar exchange rate. These positive factors are more likely to make good price of gold and silver. but the trend in technology, the gold and silver prices are still restricted�at 1430 and 36 USD. The moving ranges of Gold is similar to last week, between 1380 and 1439 USD.The moving ranges of Silver is between 34 and 36 USD.
No comments:
Post a Comment