Last week the metals recovered upon supporting levels. On the whole gold stepped upward and technical weakness diminished. Since Monday gold had moved from the weekly low, falling to the lowest of 1,503.8 USD. Dip buying was seen at 1,505 USD to pushed the commodity back to 1,517.60 USD. The key support was found at 1,510 USD on Tuesday and the level had stayed for the remaining sessions in the week. Price tended to test the upper resistance as sentiment changed on Wednesday, with a session high of 1,532.20 at which exceeded the resistance of 1,530 USD. The day high of Thursday and Friday were 1530.60 and 1538.30 USD respectively, closing at 1,536 USD, the upper of trend.
Silver performed relatively weaker. Momentum remained unstable later last week though support was found on dip. On Monday the commodity moved within narrow range. Sentiment still confused and no keen dip buying was seen. The range was as narrow as 1 dollar between 34.35-35.35 USD. Along the trend of gold silver also returned to the upper on Wednesday and tested the key resistance of 38 USD. The day high of Thursday was 38.85 USD but no further pressure was tested in next session, closing at 37.89 USD finally.
Besides technical factors, the trend of greenback retreating also contributed to the recovery of sentiment of the metals. Dollar index continued to decline from the highest of 76.36 on Monday to the lowest of 74.75 on Friday. While euro fell in the early of the week and then reversed, from the lowest of 1.3970 on Monday to the highest of 1.4320 on Friday. Commodity prices gained on the weakening dollar.
Technically both gold and silver tended to approach higher along the uptrends last week. Under the condition that status of the greenback remained, prices of the metals would test the further levels of resistance and support. Moving range of gold and silver should be at 1,510-1,560 and 35-40 USD respectively. Unfavorable factors remained to be the possibly stronger dollar and potential interest hike.
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