The gold price trend did not make importantbreakthroughlast week. The price fells in a relativelynarrow range in the whole week. Gold on Monday opened at 1,544.30USD, then rising to the highest level at1,553.50. On Tuesday, therumor of increasing the oil production lowered its price, and the gold price was alsoaffected by its bearishtrend and slightly went downwith lowest price 1,536. On Wednesday, it fell to 1,530.50, and followed by a small amount of low buying. On Thursday, it moved upto 1,533.30. However, the pricefell again on Friday, from the highest priceof1,545to the lowest weekly level of 1,525.80. Fortunately,it finally rebounded above the level of 1,530and closed at 1531.
On the other hand, Dollar stabilized in thelast week. Euro fell against dollar from the previous weekof 1.4630USD to 1.4340on last Friday. Pound against dollarfell from 1.6430 and closed at the lowest price 1.6210in the week. U.S. dollar index rebounded from the lowest 73.50to 74.80. In the short term, dollarwas evidenced the uptrendwhichcreated pressureto gold at high price.
The trends of silver price and gold pricewere different. The early part of last week, silver moved with volatility.On Friday, it had the largest volatility in the week,with the weekly highest price of 37.90USD,andthe daily lowest price of 36. Itclosed at the low level 36.10.
The gold and silver prices last weekwerestill mainly influenced by changes in oil price and the impact of the U.S. dollar. OPECclaimed that they would increasethe production in short-termwhich initiallywas a good newsto oil price. However,the market is concerning that thedeteriorating U.S. economywould lessen the demand of the oilso that the U.S. oil futures rose to the highest price of 102.45USD/barreland then retreated. The largest decline was on Friday, falling from highest 102.10 to 98.60.The declineof oil pricein the last day of the week weakened the rebound of gold and silver prices.On the other hand, Dollar stabilized in thelast week. Euro fell against dollar from the previous weekof 1.4630USD to 1.4340on last Friday. Pound against dollarfell from 1.6430 and closed at the lowest price 1.6210in the week. U.S. dollar index rebounded from the lowest 73.50to 74.80. In the short term, dollarwas evidenced the uptrendwhichcreated pressureto gold at high price.
From the chart, the price of gold is still above the big support between1,510� and 1,520USD. This support stays firm. The price of gold hit a high record of 1,575.40on 2 May,then testing some highlevels and retreats. So, the up resistance line is going down, which may affect the price of gold, further downward testing the support at 1,510. If it breaks thisbig support there will be adjustment in a certain period of time. The volatilityof this week is estimatedto be between 1,518and 1,558. Silverwill be between 35and 37. Based on Friday'sfigure,silverclosed at the lowest price, indicating that the sell order existed at the high price.
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