Third Time The Gold Price Has Knocked On The 928-930 Door.

Just about the time you start believing you understand markets, they pull something wholly unpredictable.

Yesterday gold prices fell away from the very top of their trading range USD930 to the first support level beneath those, USD920. When a market weakens like that, you expect at least a day's follow-through, but today gold prices shot up. The gold price traded as high as USD929.15. Gold climbed USD5 to close at USD926.30. Perhaps it is a sucker rally. Then again, perhaps on Monday the bears all came in and established their short positions for the week, forcing metals down. When today dawned without more bears, the buying pressure drove the price up.

Let's add a mystery to the riddle. The more times a market approaches a support or resistance area, the more likely it will break through. This is the third time the gold price has knocked on the 928-930 door.

There's something we're not seeing. Retail activity is weak, yet metals keep on climbing. The buying isn't coming from the public -- but from where then?

Back home in Malaysia yesterday PBBANK gold price close at:-

Gold Investment Account as at 19/05/09 3:50 PM

Selling PriceBuying Price
1 gramRM 107.4800RM 103.2600

with market price at RM106.15 per gram. Retail Gold activity also weak in Malaysia however the price for gold, sliver and other community is keep on climbing and I think will countinues till end of the year.

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