Third Time The Gold Price Has Knocked On The 928-930 Door.

Just about the time you start believing you understand markets, they pull something wholly unpredictable.

Yesterday gold prices fell away from the very top of their trading range USD930 to the first support level beneath those, USD920. When a market weakens like that, you expect at least a day's follow-through, but today gold prices shot up. The gold price traded as high as USD929.15. Gold climbed USD5 to close at USD926.30. Perhaps it is a sucker rally. Then again, perhaps on Monday the bears all came in and established their short positions for the week, forcing metals down. When today dawned without more bears, the buying pressure drove the price up.

Let's add a mystery to the riddle. The more times a market approaches a support or resistance area, the more likely it will break through. This is the third time the gold price has knocked on the 928-930 door.

There's something we're not seeing. Retail activity is weak, yet metals keep on climbing. The buying isn't coming from the public -- but from where then?

Back home in Malaysia yesterday PBBANK gold price close at:-

Gold Investment Account as at 19/05/09 3:50 PM

Selling PriceBuying Price
1 gramRM 107.4800RM 103.2600

with market price at RM106.15 per gram. Retail Gold activity also weak in Malaysia however the price for gold, sliver and other community is keep on climbing and I think will countinues till end of the year.

Comments

Post a Comment

Popular posts from this blog

Gold edges up on weaker dollar, dovish U.S. Fed policy bets

Image
 Gold edged higher on Monday, helped by a weaker dollar and expectations that the U.S. Federal Reserve will reiterate its dovish monetary policy stance this week. Spot gold was up by 0.1% at $1,943.58 per ounce. U.S. gold futures rose 0.1% to $1,950.10 per ounce. “Gold is firm on the basis that the Fed could adopt a further dovish message with respect to average inflation targeting,” said Michael Hewson, chief market analyst at CMC Markets UK. “If you want to have a policy of average inflation targeting, you’re going to have to go into detail as to how you are going to arrive at that particular outcome.” The dollar retreated on Mond ay, bolstering gold’s appeal for investors holding other currencies, ahead of the Fed’s policy decision due on Wednesday. “If inflation forecasts remain at 2% or below, this could offer gold a tailwind as the zero-yielding metal thrives in a low-interest rate environment,” said FXTM analyst Lukman Otunuga. Market participants are also waiting
Read more

For the gold price, two outcomes are possible.

Image
For the gold price, two outcomes are possible. First is a return to or near the April low ($1,277.40). Second is a drop to a lower low, $1,240 - $1,260. Yet a third possible outcome is that the June and December lows were not a double bottom and one further drop may come. I account that the least likely, and look for a low here by the end of the week, but I'm no more'n a nacheral born durnd fool from Tennessee, so what do I know?   You'd think that an institution charged with promoting the gold industry would produce reports that at least cast the best light on gold's prospects. You'd think wrong, if you're thinking about the World Gold Council. They've been negative on gold for, oh, the last 14 years or so. Today they issued a report that contained a nugget about Chinese business using physical gold as collateral for bank credit ($40 bn worth) but they managed to tease a gloomy forecast even out of this inventive monetary use. That and bad
Read more

The price of gold advanced as high as $1,603.40 per ounc

Image
The gold price broke out to a new all-time high above $1,600 per ounce Monday morning, rising for the eleventh consecutive trading session. The price of gold advanced as high as $1,603.40 per ounce before backing off to trade just the $1,600 level. The yellow metal gained on the back of a surge in borrowing costs for Italy, the latest European nation to see its bond market come under heavy selling pressure. The lack of a deal to raise the $14.3 trillion debt ceiling also helped boost gold prices. The eleven-day rise in the gold price is the longest winning streak since January of 1980. The gold price delivered another noteworthy performance last week, climbing 3.2% on its way to a series of fresh record highs. With Monday’s advance, the gold price extended its monthly and year-to-date gains to 6.6% and 12.5%, respectively. Last week’s two-day Congressional testimony by Chairman Ben Bernanke on the economy and monetary policy revealed that the Fed remains open to the
Read more