2011-01-26

Gold received a blow from increased risk appetite

Gold received a blow from increased risk appetite, as investors bet on the perceived signs of global recovery. Investors have reduced positions in precious metals, especially gold and silver, as interest in riskier assets grows. Even a weaker dollar could not provide much support as gold tumbled to lows last seen in October last year.

Ahead of this afternoon’s release of US consumer confidence, markets appear to be anxious. European stock markets are down and US equity futures are in the red. Improved consumer confidence and consequently greater consumer spending remains key to a strengthening of the US economy. For now the increased anxiety has not translated into safe-haven buying of
precious metals. Nevertheless, should the number disappoint, precious metals, particularly platinum and palladium, should benefit.

Consensus is for an improvement in consumer confidence in January, although we see downside risk, given the recent negativity surrounding the US economy. US house price data is not expected to be of much consequence to precious metals markets.

Gold support is at $1,318 and $1,312. Resistance is at $1,335 and $1,345.

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