Gold Tests 61.8% Retracement of Rally from 2011 Low
Gold bounced around today to trade at $1661.05 down by $8.85 from a near two-week trough, underpinned by a stronger euro ahead of the ECB loan repayments statement and the reaffirmation of Bank of Japan’s commitment to aggressive monetary easing.
The euro hit an 11-month high versus the dollar as markets awaited to know how much banks will repay of the one trillion euros in European Central Bank crisis funds that have been keeping them afloat.
A weaker dollar is often seen by other currency holders as an opportunity to buy slightly cheaper gold. The next market-moving event on the calendar is expected to be a US Federal Reserve statement on Wednesday, which will give more clues on their monetary policy.
The Bank of Japan Governor Masaaki Shirakawa reaffirmed the bank’s pledge to maintain its ultra-loose policy and more drastic easing policies may follow during the year. Monetary stimulus has been a key driver of gold’s rally in recent years, as ultra-low interest rates and heightened inflation concerns send investors to bullion.
Commodity Analysis:
Gold is testing HUGE support. The level in question is defined by the 61.8% retracement of the rally from the 2011 low (lowest level of the move from the record high) and former resistance (top of congestion from June to August 2012). The response at the level has been impressive. By the same token, a break of this well-defined support level could lead to a rush for the exits and extension of weakness.
Commodity Trading Strategy
Given the strong bounce from support, I’m inclined to look higher
but weakness below Friday’s low negates anything bullish.
I just longed 1658 on Feb gold Stop at 1654
Just in case the contol boyz get cute -- I've got a trade order to buy gold at 1646 Stop 1636
if we don't get a good bounce back up.
I dont expect the drop, just in case.
INVATA SA TRANZACTIONEZI GRATIS PIPSI IN FOREX
Gold Tests 61.8% Retracement of Rally from 2011 Low
Gold bounced around today to trade at $1661.05 down by $8.85 from a near two-week trough, underpinned by a stronger euro ahead of the ECB loan repayments statement and the reaffirmation of Bank of Japan’s commitment to aggressive monetary easing.
The euro hit an 11-month high versus the dollar as markets awaited to know how much banks will repay of the one trillion euros in European Central Bank crisis funds that have been keeping them afloat.
A weaker dollar is often seen by other currency holders as an opportunity to buy slightly cheaper gold. The next market-moving event on the calendar is expected to be a US Federal Reserve statement on Wednesday, which will give more clues on their monetary policy.
The Bank of Japan Governor Masaaki Shirakawa reaffirmed the bank’s pledge to maintain its ultra-loose policy and more drastic easing policies may follow during the year. Monetary stimulus has been a key driver of gold’s rally in recent years, as ultra-low interest rates and heightened inflation concerns send investors to bullion.
Commodity Analysis:
Gold is testing HUGE support. The level in question is defined by the 61.8% retracement of the rally from the 2011 low (lowest level of the move from the record high) and former resistance (top of congestion from June to August 2012). The response at the level has been impressive. By the same token, a break of this well-defined support level could lead to a rush for the exits and extension of weakness.
Commodity Trading Strategy
Given the strong bounce from support, I’m inclined to look higher but weakness below Friday’s low negates anything bullish.
I just longed 1658 on Feb gold Stop at 1654
Just in case the contol boyz get cute -- I've got a trade order to buy gold at 1646 Stop 1636
if we don't get a good bounce back up.
I dont expect the drop, just in case.
I dont expect the drop, just in case.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
