HXPM Gold market reviews on 24 May, 2011: Overall upside momentum remained

Daily Gold Review (2011.05.24): http://www.hx9999.com/en/index.html

Market Reviews of the Pervious Day:
During NY session on 23 May, euro continued to decline. Right after Greece and Italy Fitch again downgraded Belgium credit outlook from “stable” to “negative”. The U.S. might therefore put more pressure on the euro.
Gold ended in green on 23 May. Deteriorating European debt woes lifted the defensive demand. Rebound continued and upside bias tended to dominate.
Key Economic Data and Events:
GMT+8 14:00 Germany GDP (1st Q)
GMT+8 16:00 Germany Ifo Business Climate Index (May)
GMT+8 17:00 Euro Zone Industrial Orders (Mar)
GMT+8 22:00 U.S. New Residential Sales (Apr)
Gold:
Gold opened at 1513.55 USD on 23 May, with intra-day Low at 1504.23 USD and intra-day High at 1518.15 USD, eventually closing at 1516.78 USD. Intra-day range of 13.92 USD was seen.
Gold graduatelly recovered after retesting the lower support on Monday. Yet upside momentum was hindered as oil tumbled on soaring dollar index that rose above 76 or around 1 % during the session.
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 pattern of correction was changing in daily chart. The commodity tended to move to the range of 1526-1537 USD.
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. Gold is likely to test the target of 1526 USD and would move towards the upper of flag 1537 USD in the next stage.
Silver: overall upside momentum remained
Silver opened at 35.06 USD on 23 May, with intra-day Low at 34.42 USD and intra-day High at 35.43 USD, eventually closing at 35.09 USD. Intra-day range of 1.01 USD was seen.
Trend confused while range had been narrowed for 3 sessions. The pattern of triangle was constructing in hourly chart but momentum was still weak in 4 hour chart so break was needed before the formation confirmed. The commodity tended to move to the range of 36.45-36.70 USD if the level of 35.30 USD was broken.
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. According to partial of trend the commodity would move to the range of 36.45-36.70 USD if the level of 35.30 USD was broken.