HXPM Gold market reviews on 18 May, 2011: No break through of narrow range trading and awaiting formation of pattern

Daily Gold Review (2011.05.18): http://www.hx9999.com/en/trend_732.html

Market Reviews of the Pervious Day:
During NY session on 17 May, dollar index continued to decline under short-term technical pressure. Upside momentum should have partially exhausted. The dollar index tended to tended to test the support of 74.80 before trend further developed.
Gold ended in red on 17 May. Price once breached the bottom of narrow range but reversed on dip buying. Trading volumn reduced as sentiment of investors was very weak. Confidence mignt not be restored in short run.
Key Economic Data and Events:
GMT+8 08:30 Australia Consumer confidence Index (May)
GMT+8 16:30 U.K. Report of Central Bank’s Monetary Policy
GMT+8 16:30 U.K. Unemployment Rate (Apr)
GMT+8 17:00 Euro Zone Construction Spending (Mar)
GMT+8 20:30 Canada Wholesale Sales (Mar)
GMT+8 20:30 Canada Leading Indicator (Apr)
Gold:
Gold opened at 1489.40 USD on 17 May, with intra-day Low at 1472.60 USD and intra-day High at 1497.68 USD, eventually closing at 1485.70 USD. Intra-day range of 25.08 USD was seen.
During the session price breached the bottom of narrow range in daily chat but finally reversed on dip buying. The change in moving pattern was under observation.
If support of 1472 and 1463 USD stayed firm, the commodity tended to rebound to 1502 USD, at where the connection line between the highest of 11 and 13 May.
Currently gold was trading in choppy consolidation. Short-term moving range narrowed to 1463-1503 USD. The next lower support should be 1430 USD with short-term resistance at 1526 USD.
Trading suggestions:
Investors should observe the overall momentum. Range trade strategy is recommended within narrow range. Otherwise trade is suggested only after direction of short-term break through confirmed.
Silver: no break through of narrow range was seen and awaiting formation of pattern
Silver opened at 35.35 USD on 17 May, with intra-day Low at 33.50 USD and intra-day High at 35.42 USD, eventually closing at 33.60 USD. Intra-day range of 1.92 USD was seen.
Silver broke the downtrend since 29 Apr on Tuesday and was traded in choppy consolidation.
According to bottom divergence in hourly chart and partial pattern rebound should extend. 26.80 USD would be tested if 34.40 USD was breached.
More apparent technical pressure was seen on daily chart, especially according to pattern of moving average. Market should be volatile.
Trading suggestions:
Potential moving range shifted to 32.40-38 USD and range trade strategy should be continued.