2010-01-13

Gold failed to capitalise on the recent rally

Gold failed to capitalise on the recent rally when it could not break above $1,160 yesterday. The euro is trading weaker this morning, providing support to the dollar. Weakness comes from rising concern about a possible Greece default (with the Greece CDS rising more than 20bps towards 290bps). News that China is raising the reserve requirement for banks to drain liquidity from their market is adding downward pressure to gold.

However, uncertainty around the health of major currencies in general should see gold avoid a major sell-off. We also expect physical demand to pick up on price dips in gold. Key support for gold is at $1,142 and then $1,130. The metal will have to break above $1,158—$1,160 where after it may test $1,170.

0 comments:

Related Posts Plugin for WordPress, Blogger...

KLSE Info Zone

About This Blog

Malaysia Gold Investment

I found Gold Investment in Malaysia is a vary good tools to make profit when the market is down. I also found that Gold Price go up and down more slower compare to share market so to make money in long term, Gold is the right tools. This blog is all about Malaysia Gold Info and the way to make profi

Blog Malaysia

BlogMalaysia.com

  © Free Blogger Templates 'Greenery' by Ourblogtemplates.com 2008

Back to TOP