HXPM Gold market reviews on Apr. 7th, 2011: Consolidate before important resistance

Daily Gold Review: http://www.hx9999.com/en/trend_668.html

Market Reviews of the Pervious Day:

During NY session on 6 April, euro rose beyond 1.43 USD to Jan 2010 high as the European Central Bank was believed to raise interest on the next day, which was the first interest hike in 3 years. Market had eyed on the interest decisions on 7 Apr of the 3 major central banks this week. While ECB was most likely to increase rate, euro headed upward and the greenback was under pressure.

Gold ended higher on 6 Apr.safe haven buying continued to flow in on inflation woes. That Gold futures were support to hit new record again during the NY session.

Key Economic Data and Events:

GMT+8 19:00 U.K. Decision on Central Bank’s Rate

GMT+8 19:45 Euro Zone Decision on ECB’s Rate

GMT+8 20:30 U.S. Initial Jobless Claims (1 Apr)

Gold:

Gold opened at 1456.51 USD on 6 Apr, with intra-day Low at 1451.55 USD and intra-day High at 1462.23 USD, eventually closing at 1459.43 USD. Intra-day range of 10.68 USD was seen.

Gold extended upward track on Wednesday to hit historical high again. Yet it should be noticed that gold could not break through the connection between the high of 9 Nov and 7 Dec last year. Price was consolidating about the resistanat level currently.

For tradingwise, only the fact of upside breakthrough would confirm further upward range.

There was apparent upside trend according to daily chart while technical indicators were recovering.

Trading suggestions:

Moderate longing is suggested. Further upside potential would be developed if gold breaches the connection between the high of 9 Nov and 7 Dec last year. Investors should look for buying opportunity afterwards.

Silver: record high triggered and further upside track constructed

Silver opened at 39.50 USD on 6 Apr, with intra-day Low at 39.12 USD and intra-

day High at 39.76 USD, eventually closing at 39.52 USD. Intra-day range of 0.64 USD was seen.

Silver continued to rise on Wednesday, repeatly made 31-year records in 3 consecutive sessions.

Uptrend continued with further improved technical indicators. Target of part of pricing circle should be distributed around 41.50 USD.

Trading suggestions:

Long-term strategy is suggested. The upper target should be 41.50 USD.