Weekly Gold Review (2011.06.06): http://www.hx9999.com/en/comment_week_763.html
No sufficient change in trends was seen last week. Key support of 1,520 USD stayed but sentiment did not seem to be definitely positive. Market news mixed and range narrowed. The difference between the weekly low and high of gold, at which 1,519.50 and 1,550.50 USD respectively, was 30 USD only. In the early last week the commodity was supposed to continued uptrend developed in the previous session. Yet deteriorating U.S. economic data, say purchasing manager’s index falling 6.9 to 53.5, and underperformance of property market, signified the possibility of double-dip recession. The upside momentum of gold was therefore hindered.
Prices of the metals were under the impact of changes in dollar. On Wednesday the greenback tumbled and gold reached the weekly high of 1,550.50 USD. While on Thursday the highest was 1,544.50 USD and fell to as low as 1,519.50 USD which was the weekly low within the day. Market sentiment was mixed and the commodity tended to perform in choppy movement. Closing on Friday was at 1,542 USD.
Silver once rose to 38.80 USD on Tuesday but retreated sharply afterward. Price stepped down to 36.30 USD on Wednesday, 35.60 USD on Thursday, and 35.50 USD on Friday. As the level of 35 USD was maintained the commodity finally recovered, closing at 36.20 USD.
Last week the greenback rose early and then fell. Euro recovered to 1.4650 later in the week and closed at 1.4635, which might favor the metals. Performance of dollar should be observed. Technically gold might test the pressure under 1,560 USD. Correction should continue as long as the resistant level held. Lower support should be located at 1,515 USD. Another downtrend would be structured if the level was breached. Range should shift to 1,520-1,560 USD in the coming week. while silver should be less positive compared with gold. price was likely to test the previous weekly low of 35 USD with range within 34.50-37 USD.
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