Gold and silver were hovering at high level, depending on the change of the European debt

Last week, there were little changes in the gold price. The overall daily volatility moved up and down. The gap between high and low level is around 20 USD every day. The high price of last Monday was 1,609 USD whereas the low level was1, 590. The largest intra-day volatility in the week was on Tuesday with high level of 1,610 and low level 1,582, the difference of which was 28. The highest level of 1,610 was also the highest weekly price. When the price reached this psychological barrier, investors became cautious. The early part of gold price last Friday came cross pressure from closing positions. The price therefore went up and down near 1590. After the close of the European market, the price rebounded to above 1600. It finally closed at 1600.

Silver went up and down repeatedly as if price of gold, but the overall trend moved downward. The daily highest price of silver last week was above 40 USD and the highest one was on Tuesday at 40.90. Then, it fell to the lowest price 38.2 on Wednesday and closed at 40 on Friday.

Last week, the gold market was affected by the debt crisis in Europe. It is necessary for the EU to give a hand to Greece so that the debt crisis will not worsen in short-term. Investors can therefore take profit by closing the position. On the other hand, some investors still think the short-term measures of saving Greece did not solve the related problems. They in turn bought in at low price, so that the market price went up and down repeatedly.
Observed from the technical trend, the price of gold is at the key psychological point 1,600 USD, but the repetition and breakthrough will not create a special trading signal. There is no clear direction in the trend. The European debt issue directly affects the trend of the euro, which was also the focus of the recent financial market. Investors can take the latest news and the euro exchange rate as references.
The weekly gold price is estimated to be similar as last week, which is between 1,580 and 1,610 USD. Silver is estimated between 38.80 and 40.80. The buy-low and sell-high policy in short-term is feasible. However, the possible profit margins would not be high, so investors should pay attention to the setting of stop-loss.