Daily Gold Review (2011.05.26): http://www.hx9999.com/en/index.html
Market Reviews of the Pervious Day:
During NY session on 25 May, dollar index declined in choppy pattern. The comment of a possible interest hike by the Bank of England supported the sterling and hence the minorities to rise against the greenback. The trend and stablility of moving range was under observation.
Gold slightly retreated on 25 May. On defensive sentiment and declining greenback gold had extended gain for 4 consecutive sessions. Yet some adjustment occured at rally. Trend tended to head toward the upper of the rebounding range.
Key Economic Data and Events:
GMT+8 14:00 Germany GFK Consumer Confidence Index (Jun)
GMT+8 14:00 Switzerland Balance of Payments (Apr)
GMT+8 14:45 France Consumer Confidence Index (May)
GMT+8 15:15 Switzerland Employment rate (1st Q)
GMT+8 20:30 U.S. GDP (1st Q)
GMT+8 20:30 U.S. Weekly Initial Jobless Claims (21 May)
Gold:
Gold opened at 1526.57 USD on 25 May, with intra-day Low at 1521.49 USD and intra-day High at 1532.07 USD, eventually closing at 1525.33 USD. Intra-day range of 10.58 USD was seen.
Momentum weakened after rallied. Price was consolidating at about 1526 USD.
The nearest structural support had been located at between 1463-1472 USD, and next support at 1447-1430 USD. The commodity was trading in choppy consolidation in daily chart within wide range of 1460-1576 USD.
Yet potential resistances existed in wide range at the levels of 1526 and 1537.20 USD.
Market was lack of clear direction since the downside of gold was limited while the resistance remained strong.
Currently price stayed upon moving average according to daily chart and tended to continue to test the upper resistances.
Trading suggestions:
Investors should observe the overall momentum, especially movement within wide range. Long positions may be suggested to place a trailing stop or limit order to lock in the profit. Small size selling is recommended if gold tests the resistance of flag at 1537.20 USD.
Silver: stronger upside momentum seen as price stayed upon MA
Silver opened at 36.67 USD on 25 May, with intra-day Low at 36.28 USD and intra-day High at 37.98 USD, eventually closing at 37.89 USD. Intra-day range of 1.70 USD was seen.
Silver continued to reverse upward on Wednesday. During the Asian session price tested the resistance of moving average, quoting 38.20 USD.
Upside sideway pattern was seen in both hourly chart and 4-hour chart.
In hourly chart key resistance should be located at 39.50 USD.
Trading suggestions:
Potential moving range has shifted to 32.40-39.50 USD and range trade strategy should continue. Investors should notice to trading size and dip buying is recommended.
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