After trading in a tight range for a few days, gold broke lower yesterday. Selling came on the back of
  1. Weak investment demand, and selling in the physical market;
  2. Dollar strength, which pushed the greenback from just below USD1.4300 to as low as USD1.4130 yesterday.
The trigger for this rally in the dollar was a much weaker-than-expected US consumer confidence data reading (down m/m in July). We have seen some physical gold buying coming through on approach of USD930, which we believe should support the gold price. We see limited upside to gold at this point, and believe bias remains to the downside. After yesterday’s sharp fall, weak long positions could be hesitant to re-enter the market. Gold support is at USD932 and USD926, with resistance at USD949 and USD964.

Public Bank Gold Investment Account as at 29/07/09 3:50 PM

Selling PriceBuying Price
1 gramRM 108.9100RM 104.6700

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