Difficult To See Gold Targeting USD960

Whenever gold falls towards USD940 will see good buying. This level seems to provide good support. However, without substantial dollar weakness this week, it is difficult to see gold targeting USD960. Selling interest at this level remains strong. Gold support is at USD940 and USD935, with resistance at USD955, USD960 and USD974.


















Report from White House projects that the US fiscal deficit will rise to over USD10 trillion in the next decade. There could be increased pressure on the borrowing requirement of the US government. This could push US long-term yields higher — which would be negative for gold.

However, they also believe that higher borrowing needs could discourage foreign investors away from US bonds, which should lead to dollar weakness. This would be positive for gold in dollar terms. As believed potential dollar weakness could outweigh any higher interest rates at least for the next four quarters. Standard Bank still sees the dollar at USD1.5000 against the euro towards year-end.

Back home to Malaysia, currency exchange between USD/MYR still not mach change keep in RM3.52 per dollar level. This situation did not help push out gold price.

Public Bank Gold Investment Account as at 26/08/09 3:51 PM

Selling PriceBuying Price
1 gramRM 110.1100RM 105.8300

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