Surging at a higher speed, long position could be maintained

Market Reviews of the Previous Day:
During NY session on 8 August, the dollar index fluctuated and oscillated. The worsening debt problems from countries along Atlantic and the pressure of recession undermined investors' confidences, triggering more hedged buying.
Foreign exchange market basically continued the previous technical trend.There will still be many uncertainties in the future.The recent wide range oscillation and fluctuation continued.

August 8, international gold closed higher, breaking the historical high closing price. After Standard & Poor's lowered the U.S. sovereign credit rating, investors withdrew risky assets. S & P said the U.S. Congress and the government's recent agreement on fiscal consolidation program could not stabilize the debt issues in medium-term. With growing challenges, the U.S. decision-making, the effectiveness of political institutions, the stability and the predictability were weakened.

Key Economic Data and Events:
GMT+8 16:30 UK Industrial Production (June);
GMT+8 16:30 UK Trade Balance (June);
GMT+8 20:30 US Unit Labor Costs (2nd quarter);
GMT+8 02:15 August 10 US Feb Interest Rate Decision, pre-value 0.25%.
Gold:
Gold opened at 1668. 70 USD on 8 August, with intra-day Low at 1666.56 USD and intra-day High at 1720.30 USD, eventually closing at 1719.47 USD. Intra-day range of 53.74 USD was seen.

Gold oscillated at a certain level and then surged quickly on Monday, breaking the previous weak resistance which is the upside of the rising channel from Jan 28, 2011. The staged target of the overall uptrend was approaching. The estimated range will be at 1740 – 1750.

Considered from the strength of the trend, it is possible for the price to rise above 1740 – 1750 in the next week.
Trading suggestions:
Long position could be held temporarily, with stop-loss below 1670 USD, targeting 1740-1750.