2012-05-16

For gold, there is sustained and strong physical buying coming into the market from the Far East

The fallout in gold (and most other asset classes) continued yesterday, with a strengthening dollar weighing heavily on the complex. The liquidation continued on Asian metal exchanges, with arbitrage selling the major theme. Japanese remained net sellers on both the physical and investment fronts.
This morning, we had better-than-expected German GDP data (+1.7% y/y, compared to a consensus of +0.9% y/y) which curbed the euro sell off and helpedgold price gain some ground.

Eurozone economic activity figures were also better than expected, showing that the region’s economy did not contract (zero y/y growth was recorded). However, the support for the euro already shows signs of fading, which is again seeing gold price wobble. For gold, there is sustained and strong physical buying coming into the market from the Far East, which should see the metal hold the $1,550 level.
Later today we have some US data flow which if disappointing could prompt a turnaround for markets on increased expectations of further Fed monetary accommodation. This seems unlikely though given the modest expectations for these numbers.

Of most importance is probably April retail sales, for which analysts are forecasting a meagre 0.1% m/m increase. Gold support is at $1,547 and $1,537. Resistance is $1,578 and $1,597.

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