HXPM Gold market reviews on 16 May, 2011: Short-term oscillations under uncertainties

Daily Gold Review (2011.05.16):  http://www.hx9999.com/en/trend_727.html

Market Reviews of the Pervious Day:
During NY session on 13 May, dollar index opened weak and then rallied. Strength extended that the dollar index hit the one and a half month high of 75.95.
Gold closed weak on 13 May but still in the rebound mode. Performance tended to remain unstable. Rebound of the greenback limited the upside momemtum yet the commodity was still attractive on its defensive and preservative nature, especially during time of severe financial difficulties among the Euro Zone.
Key Economic Data and Events:
GMT+8 17:00 Euro Zone Balance of Payments (Mar)
GMT+8 17:00 Euro Zone Consumer Price Index (Apr)
GMT+8 20:30 Canada Manufacturing New Orders (Mar)
GMT+8 21:00 U.S. Net Long-Term Capital Inflow (Mar)
Gold:
Gold opened at 1506.78 USD on 13 May, with intra-day Low at 1483.53 USD and intra-day High at 1516.51 USD, eventually closing at 1494.32 USD. Intra-day range of 32.98 USD was seen.
On Friday gold failed to test the recent high of 1526.47 USD and retreated rapidly, slightly rebounded with dip buying upon upside trendline since 28 Jan.
Short-term moving range shifted to 1478-1516.51 USD. The next lower support would be 1463 USD with upper resistance at 1526 USD in short run. There should be no follow through for the range trading market
Trend seemed stronger than silver accourding to daily chart yet reversal momemtum was not confirmed. Investors should observe the overall momentum as adjustment could end in any time.
Buying on dip should always be the best strategy.
Trading suggestions:
Investors should observe the overall momentum. The short gold position at about the trendline may be suggested to place a trailing stop or limit order to lock in the profit. Direction of short-term break through should be noticed.
Silver: short-term oscillations with uncertainties
Silver opened at 34.74 USD on 13 May, with intra-day Low at 34.04 USD and intra-day High at 36.45 USD, eventually closing at 35.43 USD. Intra-day range of 2.41 USD was seen.
Silver rebounded on Friday but selling on rally occured below the downside trendline since 29 Apr. Current moving range was constructed by the mid-long term uptrend since 24 August 2010 and downtrend since 29 Apr.
Change in market sentiment occured according to daily chart.
If performance of short-term followed the mid-long term direction and the recent momemtum, the commodity was more likely to break through the downside trendline since 29 Apr horizontally. Else if price rose to break through the recent downtrend, certain correction should occur.
Trading suggestions:
Recent moving range shifts to 36.50-32.10 USD and direction of short-term break through is under observation. Before that range trade strategy should be continued