2010-10-28

Gold have been hit hard as investors take profits and adopt a wait-and-see approach

Gold have been hit hard as investors take profits and adopt a wait-and-see approach ahead of next week’s FOMC meeting (2-3 Nov). Growing uncertainty over the magnitude of the Fed’s second-round of quantitative easing has seen a resurgence in the dollar and an accompanying push lower on commodities. The consensus has been for around $500bn in monetary accommodation, though conflicting signals from recent data flow and comments by Fed members seems to have dampened these expectations.

Yesterday, US consumer confidence showed an encouraging increase, but also revealed that Americans’ view of the labour market has worsened. The Fed’s Dudley spoke yesterday saying that the recovery has been “tepid” and that more stimulus is “likely warranted”, while Fed member Hoenig reiterated that further quantitative easing would be a “dangerous gamble”.
Given this uncertainty we expect precious metals to remain largely range-bound with a bias to the downside ahead of next week’s meeting, as investors continue to lock in profits or opt to remain on the sidelines. Limited physical buying might provide some support on dips.

Gold support is at $1,325 and $1,319. Resistance is at $1,342 and $1,351. Silver support is at $23.26 and $22.81, resistance is at $24.06 and $24.40.

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