HXPM Gold market reviews on 6 May, 2011: Sentiment of the market waschanging and gold declined to the initial support

Daily Gold Review (2011.05.06): http://www.hx9999.com/en/trend_714.html

Market Reviews of the Pervious Day:
During NY session on 5 May, the greenback reversed and boosted against the majorities. Stocks and high yield capital was hit by worries about global economic recovery. The two major central banks in Europe announced to maintain the current interest rate and the President of European Central Bank Jean-Claude Trichet did not signal further interest hike.
Gold settled sharply lower on 5 May. Investors preference changed, that silver futures tumbled while dollar strengthened. Technical characteristics of trend were expected to extend and performance of the commodity would be fluctuated.
Key Economic Data and Events:
GMT+8 16:30 U.K. Producer Input Price Index (Apr)
GMT+8 18:00 Germany Industrial Production (Mar)
GMT+8 19:00 Canada Unemployment Rate (Apr)
GMT+8 20:30 U.S. Unemployment Rate (Apr)
GMT+8 20:30 U.S. Non-Agricultual Employment (Apr)
Gold:
Gold opened at 1516.44 USD on 5 May, with intra-day Low at 1463.07 USD and intra-day High at 1522.09 USD, eventually closing at 1474.08 USD. Intra-day range of 59.02 USD was seen.
Gold extended steep downtrend on Thursday, closing with long bearish candlestick. The commodity had undergone loss of over 100 USD since the circle target reached, triggering certain panic sentiment among the market.
Technically pattern of trend was altering according to daily chart. The whole scale of correction should continue at least for a month even though long-term uptrend might remain.
The initail support of 1467 USD was broken while downside was limited within.Trading range was expected tobe 1467-1430USD but downsidewaslimited.Lower of wide range should be at about 1410-1400 USD and expected moving range should be 1458-1508 USD.
Trading suggestions:
If investorsholds the short positions as suggested, square the partial and usethe trailing stop to lock in profit of the remaining. Short-term investors should sell if the commodity retreats to level about 1490-1495 USD.