2011-03-26

US Consumer Confidence numbers - poor result might benefit gold and silver


Yesterday saw an aggressive bout of speculative selling and profit-taking in afternoon trade. For gold and silver the trigger occurred around the $1,450 and $38 levels. Since then, gold and silver have started to rebound, with silver leading the way.

Continued conflict in Libya, growing focus on the European debt crisis and uncertainty surrounding the longer-term impact of the Japanese earthquake should keep investors interested in gold and silver. Poor durable goods out of the US, may also be lending support. Durable goods orders fell 0.9% m/m in February, far short of the 1.2% m/m increase the market expected. Signs that the US economy remains fragile are bullish for precious metals as it alleviates fears over an early reigning in of monetary accommodation.

To this end, US Consumer Confidence numbers, out later today, could prompt some reaction. Given that consumer buying remains the engine of the US economy (consumption expenditure accounts for around 70% of GDP), a poor result might benefit gold and silver.

Gold support is at $1,422 and $1,411. Resistance is at $1,447 and $1,460.

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