Market Reviews of the Previous Day:
During NY session on 5 July, due to a downgrade of Portugal by Moody's rating, the need for risk-aversion increased. The euro fell sharply against the dollar and Swiss franc. Market pays close attention to ECB's rate decision and the speech of Trichet.
Although the finance ministers of Eurozone have approved a12 billion euro loan for Greece, it did not alleviate people's concern. Portugal's downgraded by Moody's further raised the hedging need.
Market continued the previous technical trend and breakthroughs were not seen. There are still many uncertainties in the market. The U.S. economic data and ECB's meeting for monetary policy will be in focus.
GMT+8 17:00 Eurozone GDP (quarterly)
GMT+8 18:00 Germany Factory Orders (May)
GMT+8 20:30 Canada Building Permits (May)
GMT+8 22:00 U.S. ISM Non-manufacturing Index (June)
Gold:
Gold opened at 1495.90 USD on 5 July, with intra-day Low at 1493. 38 USD and intra-day High at 1516.47 USD, eventually closing at 1515.79 USD. Intra-day range of 20.57 USD was seen.
Before the change of gold's long-term uptrend, the whole pattern was in wide range oscillation.
Trading suggestions:
If gold stays above 1511 USD, the oscillation range can be up to 1527. Range trading could be considered.
During NY session on 5 July, due to a downgrade of Portugal by Moody's rating, the need for risk-aversion increased. The euro fell sharply against the dollar and Swiss franc. Market pays close attention to ECB's rate decision and the speech of Trichet.
Although the finance ministers of Eurozone have approved a12 billion euro loan for Greece, it did not alleviate people's concern. Portugal's downgraded by Moody's further raised the hedging need.
Market continued the previous technical trend and breakthroughs were not seen. There are still many uncertainties in the market. The U.S. economic data and ECB's meeting for monetary policy will be in focus.
July 5, international gold closed higher. The fear of global debt problems prompted a greater hedging demand of investors for buying gold futures. Some believe the debt problems of the U.S. and Europe, in addition to the global exchange rate volatility and political instability, kept supporting gold futures market. One of the reasons that gold futures fell from 1,550 USD per ounce was debt default not yet happen in Greece. However, it is still approaching the outbreak of the default, which formed a support for gold.
Key Economic Data and Events:GMT+8 17:00 Eurozone GDP (quarterly)
GMT+8 18:00 Germany Factory Orders (May)
GMT+8 20:30 Canada Building Permits (May)
GMT+8 22:00 U.S. ISM Non-manufacturing Index (June)
Gold:
Gold opened at 1495.90 USD on 5 July, with intra-day Low at 1493. 38 USD and intra-day High at 1516.47 USD, eventually closing at 1515.79 USD. Intra-day range of 20.57 USD was seen.
Gold rebounded continuously on Monday, closed with bullish candle. It rose above the previous high level before retreating at 1502.76 USD, showing a more powerful breakthrough than the previous one, but there are certain repetitions in the market. The discontinuous trend also shows the weak momentum.
Please remind that there were uncertainties and repetition in the market trend.Before the change of gold's long-term uptrend, the whole pattern was in wide range oscillation.
Trading suggestions:
If gold stays above 1511 USD, the oscillation range can be up to 1527. Range trading could be considered.
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