Gold price is moving down when reached the new high and will repeated at high pace in short term

Last week, gold is still supported by the financial market's instability sentiment. Investors' response to sovereign rating was not completed although other international rating agencies have expressed to maintain the U.S. sovereign rating. It is still difficult to adjust the credit and debt crisis will worsen or not. High hedge assets such as gold and the Swiss franc are grab high in the market. Gold prices in the new round of buying support, last week hit a high record of $ 1,814.50.

Last Monday the price of gold was moved up after the reduction of United States' sovereign rating. The funds immediately went into the gold market. The gold price on that day had a trial at high record of 1723, on Tuesday appeared another new high of 1780, to last Wednesday the last hit a high record at1814.50. If calculated from the lowest 1682 from last Monday to the highest 1814.50 on Wednesday, there was an USD132.50 increase last week. Gold price began to fall on Thursday. The price of gold plunged from 1,808.40 back to 1,732. That day have a decline of 76.40. That decline in the technology trend was one day reversal and temporary stop the trading of investors. The price of gold on Friday had a minor downward adjustment and close at 1756.30 finally.

The recent trend of the price of silver and gold trend was significantly different, which suggests that gold is good on the characteristics of financial assets. Silver price per ounce last week is only USD39 and fluctuated at the central axis jagged. After Standard & Poor's lowered the sovereign rating of the United States, the global response is just begun to start. It is estimated that price of gold still has a large collection over and over again in short-term. Silver will still be inferior to the price performance of gold.

The price of gold will benefit from the hedging of U.S. dollar assets supported by capital inflows but there will be a bearish factor in short term which is included the recent increase in the price of gold. On Wednesday appeared one day reversal; U.S. stocks will go into recession as investors expected of future U.S. economic. After economic deterioration, the ability of investors to hold assets and reduced the demand of gold is bearish on the price of gold. Other point that need to be noted that was the recent gold price moving up and down repeatedly. The U.S. gold futures market will raise the margin of gold future which made investors have a certain pressure on holding multiple positions in short-term.
I believe the volatility of this week will be over USD100 and the price volatility is between in USD1700 to 1820. Investors should be caution the price will fell down when reach a new high record. Investors having short positions should be caution the sudden increase of long positions. Silver prices will be resisting at USD41, lower support will be around USD36.