Gold Maket Update

In volatile trading within a narrow range yesterday, gold closed at 1600 after making a high of 1606 and finding support at 1594.The continued strength in equities and the dollar is tempering investment demand for gold and the resolution of the Cyprus situation has reduced the demand for gold as a "safe haven" asset.

Oil is moving sharply higher, trading above $96 a barrel for the first time since February.  If crude continues to move higher, this will spark inflation fears and also worries over the fragile economic recovery, which should be a supporting factor for gold.

As long as an environment of negative real interest rates (nominal interest rate less inflation) exists, gold will continue to be supported and see investment demand.  We don't see this changing in the foreseeable future.

Gold has been trading in a range since mid-February, with 1617-1620 at the top of the range and 1554-1560 at the bottom.  The yellow metal is currently trading in the middle of the range - we await a breakout one way or the other that should be a strong tradeable move.

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GOLD CURRENT TRADE

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Our Position 

Bought 1Apr Gold on 25/03/2013

Entry: 1592

Stop  : 1578

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SILVER CURRENT TRADE

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Our Position 

Bought 1May Silver on 25/03/2013

Entry: 28.60

Stop  : 28.00

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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS 
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. 

 King Regards