Malaysia Gold Investment

The precious metals market is quiet, with gold trading in a tight range. Like base metals and energy, precious metals remain highly dependent on what is happening in other financial markets — especially US equities. Have seen some good two-way interest coming from different locations this morning. The $1,103 level provides resistance. On the downside, we continue look at $1,085 as key support for gold.

Gold held up well until yesterday morning when weaker equities and the stronger dollar started to weigh on all commodities. With gold breaking out of the lower end of its recent trading range, we now find it difficult to see major upside for the metal in coming weeks. Currency fluctuations and appetite for gold in the physical market guide my analysis. While physical demand has not been exceptional, we have seen a steady buying interest during the past few weeks. This physical buying interest has no doubt supported gold in recent days. This physical demand is evident in how gold denominated in euro outperformed gold denominated in dollar — despite ETF holdings falling. February could be a weak period for physical demand. Last year, between February and April the volumes of scrap gold that came to the market were large (as evident from the negative values in my index during that period). While there is no guarantee that such selling will be repeated, we may advise caution. From physical...

From this fews days gold price movement, we likely to see gold move sideways till end of 1Q2010 due to most of the investment fund still in share market. However the gold price bull run still in line and USD1120 level giving a vary good support. Now too may good news in share market plus in Asia Chinese New Year rally is on going so gold price may likely to stable at 1130 level for some time.

Gold erased the gains of Monday as selling triggered stops. The move wasn't precipitated by anything in particular, however momentum faded then stops were triggered at $1,140. With gold pushing lower we are seeing very good physical demand coming through and as a result we expect the metal to remain well supported around the $1,114—$1,120 level. However, we are also seeing good selling above $1,1130 which makes us believe gold is going to find it difficult to push higher after yesterday’s sell-off.

Gold failed to capitalise on the recent rally when it could not break above $1,160 yesterday. The euro is trading weaker this morning, providing support to the dollar. Weakness comes from rising concern about a possible Greece default (with the Greece CDS rising more than 20bps towards 290bps). News that China is raising the reserve requirement for banks to drain liquidity from their market is adding downward pressure to gold. However, uncertainty around the health of major currencies in general should see gold avoid a major sell-off. We also expect physical demand to pick up on price dips in gold. Key support for gold is at $1,142 and then $1,130. The metal will have to break above $1,158—$1,160 where after it may test $1,170.

Gold price broken above USD 1,140 level, base on the chart the gold price may end the correction and continues the bull rally. During the gold price dip the market buying fouce still high. China and India keep buying gold during the price drop and take up all gold sale by ETF. For sure I think China and India is above to replace USD reserve to gold bar. If the replacement completed so the USD dollar will be not value. The gold price will drop abit base on the chart but this is the time to buy in again.

Gold opened on its lows at 1124.50/1125.50 and gathered momentum as the dollar retreated, finding resistance near 1130.00. Oil initially tumbled on the back of much greater than anticipated weekly inventories, but later made back lost ground and gold followed. Investors continued to push the metal higher, peaking at 1138.00/1139.00. It ticked marginally lower near the tail end of the session, finally settling at 1135.75/1136.75. Technical Commentary Gold pushed higher today to the key technical pivot near 1140. We think this area should provide good resistance with a break opening up the former high of 1168. This 1168 level is also the 61.8% Fibonacci pull back from our 1226.50 to 1075 December correction. Support comes in at last week’s high of 1113.

Today sees the release of PMI/ISM Manufacturing indices for major economies. After a good reading from China’s PMI index early this morning, risk appetite is good. This is benefiting commodities including precious metals. Precious metals are also benefiting from a slightly weaker dollar. While there is good buying interest this morning, the week ahead is data heavy and as a result buying could drop away as the week progresses. Most notable is Friday’s US non-farm payroll data which has been instrumental in triggering the current dollar rally, after the much better-than-expected November payroll figure. With gold close to $1,100 dips are likely to be bought. Buying stops in gold were triggered at $1,006 and there remains good buying interest on pull-backs. More buying could be triggered should gold move above the $1,120 — $1,122 level. Gold support is at $1,100 and $1,090 while resistance is at $1,116 and $1,122. We continue to see physical buying in the gold market. However, as we head...