Market Reviews of the Previous Day:
During NY session on 17 June, dollar index fell the second day after reaching the technical resistance on the long-term trend line. The euro rose against the dollar and hit the highest level in two weeks. Greece was expected to receive the new assistance to avoid default. But Moody's placed the credit ratings of Italy to the review list which may consider as downgrade. The increase of euro against the dollar was therefore reduced. The market also worried that the recovery of the U.S. economy will be slowed down.
GMT+8 14:00 Germany Producer Price Index, pre-value 1.0% / month, 6.4% / year (May)
GMT+8 16:00 Eurozone Current Account, pre-value -4.7billion euro (April)
GMT+8 22:30 Eurozone European Central Bank President Trichet’s speech
Gold:
Gold opened at 1529.30 USD on 17 Jun, with intra-day Low at 1522.85 USD and intra-day High at 1541.97 USD, eventually closing at 1539.25 USD. Intra-day range of 19.12 USD was seen.
Trading suggestions:
The up resistance is at the connection of the high levels of May 2 and June 6, nearly 1545 USD. Once breaking, the gold would reach 1576, which is a good opportunity for trading. Before that, investors could consider selling on the upside range.
During NY session on 17 June, dollar index fell the second day after reaching the technical resistance on the long-term trend line. The euro rose against the dollar and hit the highest level in two weeks. Greece was expected to receive the new assistance to avoid default. But Moody's placed the credit ratings of Italy to the review list which may consider as downgrade. The increase of euro against the dollar was therefore reduced. The market also worried that the recovery of the U.S. economy will be slowed down.
June 17, international gold closed slightly higher. The uncertainty of the Greece rescue plan and a weaker dollar boosted the gold price. After Germany and France promised to provide assistance to Greece, dollar was weakened and therefore the gold market turned to be bullish. In addition, the price of gold gained support when the debt crisis spread in Europe.
Key Economic Data and Events:GMT+8 14:00 Germany Producer Price Index, pre-value 1.0% / month, 6.4% / year (May)
GMT+8 16:00 Eurozone Current Account, pre-value -4.7billion euro (April)
GMT+8 22:30 Eurozone European Central Bank President Trichet’s speech
Gold:
Gold opened at 1529.30 USD on 17 Jun, with intra-day Low at 1522.85 USD and intra-day High at 1541.97 USD, eventually closing at 1539.25 USD. Intra-day range of 19.12 USD was seen.
Gold rose on Friday, The initial consolidation seems to appear on the daily chart. Before the change of this long-term uptrend, the market is full of supports. The whole pattern was in wide range oscillation.
The upside range after initial consolidation is along the high levels of May 2 and June 6, 2011, but the downside is still uncertain. The one connected the low levels of May 5 and May 17 and also the one connected May 17 and June 13 can be regarded as the downside.Trading suggestions:
The up resistance is at the connection of the high levels of May 2 and June 6, nearly 1545 USD. Once breaking, the gold would reach 1576, which is a good opportunity for trading. Before that, investors could consider selling on the upside range.
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