Daily Gold Review (2011.05.23): http://www.hx9999.com/
Godl ended in green on Friday while correction continued. Market was in partially equilibrium and change in sentiment should be noticed.
Market Reviews of the Pervious Day:
During NY session on 20 May, euro tumbled on downgrade of Greece credit rating by Fitch and the increasing possibility of Greece restructuring debts. The said currency fell to a record low against the Swiss Franc.
Gold ended in green on 20 May. Massive defensive buying flowed in on Fitch downgrading Greece. Gold broke through the technical range in previous week but uncertainties remained.
Key Economic Data and Events:
GMT+8 13:00 Japan Monthly Report of Central Bank
GMT+8 15:00 France Manufacturing Purchasing Manager’s Index (May)
GMT+8 15:30 Germany Manufacturing Purchasing Manager’s Index (May)
GMT+8 16:00 Euro Zone Manufacturing Purchasing Manager’s Index (May)
Gold:
Gold opened at 1493.81 USD on 20 May, with intra-day Low at 1487.00 USD and intra-day High at 1515.60 USD, eventually closing at 1511.57 USD. Intra-day range of 28.60 USD was seen.
Gold fluctuated on Friday and breached the pressure from connection line between the highest of 11 May and 13 May, as well as the level of 1,500 USD, closing slightly lower.
Investors resumed to European financial crsis as credit rating of Greece was downgraded again. Defensive sentiment lifted and funds flowed into the precious metals, supporting the gold price.
Currently gold was trading in choppy consolidation. Although the commodity found support at 1463, 1447 and 1430 USD, the recent rebound is regarded as the retractment of the decline from the peak 1576 USD. The structure of correction was changing in daily chart.
Trading suggestions:
Investors should observe the overall momentum. Overnight long positions may be suggested to place a trailing stop or limit order to lock in the profit. Buying the rally is not recommended in short-term as partial target had been fulfilled and price might retreat.
Silver: trend recovered but correction continued
Silver opened at 35.01 USD on 20 May, with intra-day Low at 34.29 USD and intra-day High at 35.57 USD, eventually closing at 35.01 USD. Intra-day range of 1.28 USD was seen.
Trend was weaker than gold on Friday as upside momemtum was under pressure from moving average.
For the previous sharp decline market panic and mild technical recovery tended to make up the coming moving pattern. The downfall since 50 USD seemed to be the initial of correction. The current trend should be considered as a horizontal adjustment rather than a strong upside momemtum.
Overall process would take longer.
Trading suggestions:
Price tended to move sideway at the lower. Potential moving range is located at 32.40-38 USD and range trade strategy should continue.
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