Market Reviews of the Previous Day:
During NY session on 1 August, the risk sentiment deteriorated and non-US currencies fell rapidly. The dollar, yen, and Swiss franc went strong and the exchange rates of Swiss franc and Japanese further increased. The dollar against the yen hit another low record since the earthquake from March 11. Affected by the fundamental factors, market concerned that the Fed would not introduce QE3.
Although the U.S. two major political parties have reached a compromise on the debt ceiling, market still worried that the deficit agreement including a total of 2.4 trillion reduction in the next 10 years is not able to maintain the AAA rating in the U.S. This large-scale deficit reduction may also have bad impacts on the sluggish economy.
In addition, the U.S. manufacturing data directly led to the sudden rise of hedging need.The U.S. ISM manufacturing PMI in July fell the third consecutive months, dropping to the lowest 50.9 USD since July 2009. The data further exacerbated the market concern on the health of the U.S. economic.
Market basically continued the previous technical trend. There are still many uncertainties in the future. The recent wide range oscillation remained.
GMT+8 16:30 UK Construction Purchasing Managers' Index (July);
GMT+8 17:00 Eurozone Producer Price Index (June);
GMT+8 20:30 U.S. Personal Income (June).
Gold:
Gold opened at 1626. 10 USD on 1 August, with intra-day Low at 1609.28 USD and intra-day High at 1631.10 USD, eventually closing at 1620. 55 USD. Intra-day range of 21.82 USD was seen.
Trading suggestions:
Oscillation range is between 1603.85 and 1632.41. Range trading is recommended for short position or position could be opened when there is a breakthrough at closing, targeting 1649.
During NY session on 1 August, the risk sentiment deteriorated and non-US currencies fell rapidly. The dollar, yen, and Swiss franc went strong and the exchange rates of Swiss franc and Japanese further increased. The dollar against the yen hit another low record since the earthquake from March 11. Affected by the fundamental factors, market concerned that the Fed would not introduce QE3.
Although the U.S. two major political parties have reached a compromise on the debt ceiling, market still worried that the deficit agreement including a total of 2.4 trillion reduction in the next 10 years is not able to maintain the AAA rating in the U.S. This large-scale deficit reduction may also have bad impacts on the sluggish economy.
In addition, the U.S. manufacturing data directly led to the sudden rise of hedging need.The U.S. ISM manufacturing PMI in July fell the third consecutive months, dropping to the lowest 50.9 USD since July 2009. The data further exacerbated the market concern on the health of the U.S. economic.
Market basically continued the previous technical trend. There are still many uncertainties in the future. The recent wide range oscillation remained.
August 1, international gold closed lower, oscillating at high level. The upward momentum of daily chart weakened, but the overall trend did not change.
Key Economic Data and Events:GMT+8 16:30 UK Construction Purchasing Managers' Index (July);
GMT+8 17:00 Eurozone Producer Price Index (June);
GMT+8 20:30 U.S. Personal Income (June).
Gold:
Gold opened at 1626. 10 USD on 1 August, with intra-day Low at 1609.28 USD and intra-day High at 1631.10 USD, eventually closing at 1620. 55 USD. Intra-day range of 21.82 USD was seen.
Gold continued the adjustment at high level on Monday, but not able to break through the oscillation range of 1603.85-1632.41. Market is still waiting for the short-term direction.
In term of continuity, the uptrend in medium and long term confirmed if the price doesn't fall below1540. Partial adjustments may occur.Trading suggestions:
Oscillation range is between 1603.85 and 1632.41. Range trading is recommended for short position or position could be opened when there is a breakthrough at closing, targeting 1649.
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