Market Reviews of the Pervious Day:
During NY session on 26 May, dollar index fluctuated and finally moved downward along range. Tentatively depressive U.S. economic growth and employment data overcame the impact of European debt crisis. Trend and stability of moving range was under observation.
Gold continued to decline on 36 May, hindered by the sharply falling euro on financial crisis among the zone. Yet support from safe haven buying was seen. Overall pattern remained and trend tended to move towards the upper of rebounding range.
Key Economic Data and Events:
GMT+8 17:00 Euro Zone Industrial Business Climate Index (May)
GMT+8 17:30 Switzerland KOF Leading Indicator (May)
GMT+8 20:30 U.S. Personal Income (Apr)
GMT+8 21:55 U.S. University of Michigan Consumer Sentiment Index (May)
GMT+8 22:00 U.S. Pending Home Sales (Apr)
Gold:
Gold opened at 1525.41 USD on 26 May, with intra-day Low at 1514.89 USD and intra-day High at 1531.07 USD, eventually closing at 1518.84 USD. Intra-day range of 16.18 USD was seen.
Gold continued to decline on Thursday, closing with a short bearish candlestick. Price reversed upward during the early Asian session, quoting 1524.82 USD.
Price stayed above the moving average that upside momentum should still remain, tending to test 1540 USD at which the upper of range since 5 May.
Uncertainties existed as pattern in long run and medium run diverged. Long-term strategy should dominate as long run uptrend remained.
While in the medium-short run the commodity was trading in wide range oscillation. Wide range should be located between 1460-1576 USD. Partially potential pressure should be distributed at 1526 and 1540 USD.
Trading suggestions:
Investors should observe the overall sentiment, 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 approaches stronger reversal momemtum when testing the resistance of flag at 1540 USD.
Silver: slightly retreated while upside momentum remained
Silver opened at 37.90 USD on 26 May, with intra-day Low at 36.34 USD and intra-day High at 38.85 USD, eventually closing at 37.28 USD. Intra-day range of 2.51 USD was seen.
Silver retreated sharply below the upper of wide moving range. Sideway movement was seen in short run.
Moving average tended to converge according to daily chart. The commodity should continue to move upside toward upper of range if downside support of 36.28 USD remained.
Partially key resistance was located at 39.50 USD in daily chart.
Overall sideway correction pattern should take longer.
Trading suggestions:
Potential moving range has shifted upside 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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