2010-01-05

Gold will trade higher in 2010.

Today sees the release of PMI/ISM Manufacturing indices for major economies. After a good reading from China’s PMI index early this morning, risk appetite is good. This is benefiting commodities including precious metals. Precious metals are also benefiting from a slightly weaker dollar.

While there is good buying interest this morning, the week ahead is data heavy and as a result buying could drop away as the week progresses. Most notable is Friday’s US non-farm payroll data which has been instrumental in triggering the current dollar rally, after the much better-than-expected November payroll figure.

With gold close to $1,100 dips are likely to be bought. Buying stops in gold were triggered at $1,006 and there remains good buying interest on pull-backs. More buying could be triggered should gold move above the $1,120 — $1,122 level. Gold support is at $1,100 and $1,090 while resistance is at $1,116 and $1,122. We continue to see physical buying in the gold market.
However, as we head into Q1 (a low seasonal period) we could see this demand slow and as a result we would not get too bullish on gold just yet. Overall we still believe gold will trade higher in 2010.

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