Daily Gold Review (2011.05.20): http://www.hx9999.com/en/index.html
Market Reviews of the Pervious Day:
During NY session on 19 May, market traded in choppy consolidation. The dollar index dropped in sideway movement with 74.80 as a key support.
Gold slightly declined and technical range movement remained. Treding volumn lessened as market sentiment had not recovered. There was report that both holding and trading of COMEX gold futures had been shrinking.
Key Economic Data and Events:
GMT+8 14:00 Germany Producer Price Index (Apr)
GMT+8 16:00 Euro Zone Current Account (Mar)
GMT+8 19:00 Canada Consumer Price Index (Apr)
GMT+8 20:30 Canada Retail Sales (Mar)
GMT+8 22:00 Euro Zone Consumer Confidence Index (May)
Gold:
Gold opened at 1497.07 USD on 19 May, with intra-day Low at 1488.10 USD and intra-day High at 1499.74 USD, eventually closing at 1490.68 USD. Intra-day range of 14.64 USD was seen.
Gold failed to test the pressure of connection line between the highest of 11 & 13 and the level of 1500 USD on Thursday. Trend declined and range narrowed. Market sentiment was very weak. Correction partially extended during the early Asian session.
Currently gold was trading in choppy consolidation. The recent fall showed lack of momentum since the correction of downside from the peak 1576 USD occurred.
Short-term moving range shifted to 1463-1500 USD. The next lower support should be 1430 USD with resistance at 1526 USD tentatively.
Gold was more likely to break through the level of 1500 USD gradually.
Trading suggestions:
Investors should observe the overall momentum. Range trade strategy is recommended. Otherwise trade is suggested only after direction of short-term break through confirmed.
Silver: partially in equilibrium
Silver opened at 35.07 USD on 18 May, with intra-day Low at 34.57 USD and intra-day High at 35.74 USD, eventually closing at 34.96 USD. Intra-day range of 1.17 USD was seen.
Trend was volatile on Thursday. Short-term correction was seen in hourly chart after slight rebound.
The commodity tended to correct from the downfall since 50 USD. The momentum of upmove was uncertain so expected range trading remained.
Technically silver should test the levels about 36.80 and 37.20 USD.
More apparent technical pressure was seen on daily chart, especially according to pattern of moving average. Market should remain volatile and duration of the cycle would be rather long.
Trading suggestions:
Potential moving range is located at 32.40-38 USD and range trade strategy should continue. Overnight long positions may be suggested to place a trailing stop or limit order to lock in the profit. Small size shorting is recommended along the long-term moving average and target of current rebound.
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