Malaysia Gold Investment

Gold is finding support from Greece’s debt problems. This support remains firmly in place. Although Greece is negotiating with the IMF over the details of an aid package, any deal on not finalized yet. With the European Commission the European Central Bank and the IMF all involved in the aid package, the boxes that need to be ticked before any package is enacted are many. Furthermore, the no-bailout rule that many saw as a pillar of strength to the euro seem to have been abandoned. It may lead to more euro weakness in the future. Despite this possibility of more euro weakness and despite gold’s close relationship with the euro/dollar exchange rate, the metal should hold up well as credit risk remains elevated. Gold in euros should still outperform gold in dollars. Gold support is at $1,142 and $1,128, while resistance is at $1,160 and $1,166.

While the Goldman Sachs saga has also been the main factor affecting the precious metals, geology has also been an issue. Gold is often transported using commercial airlines. With flights in much of northern Europe still banned, due to the volcanic eruption in Iceland, there are concerns over the availability and movement of physical gold. Much of the market seems happy to wait the disruption out. However, with Zurich a no-go zone for the moment, the focus for material is shifting elsewhere, impacting on premiums in other parts of the world. The general market consensus is that the flight disruption will be short lived, however given that volcanic activity in Iceland can be rather protracted, the disruption may last longer than is currently anticipated. Back home to Malaysia, gold demand still good due to the price is low however as recovery of US dollar vs Ringgit Malaysia gold price may likely to move high at 2H2010.

This morning has seen gold come under pressure, in line with the stronger dollar, though it remains within recent ranges and has is finding solid support with some participants looking to buy on dips. The dollar strength is very much a function of the ongoing concerns over Greece, in particular whether the €45 billion rescue facility is a cure or merely a temporary analgesic helping make the symptoms more bearable. Malaysia Gold price also come under pressure with stronger Ringgit vs USD.

There was very little gold selling in the physical market yesterday afternoon, which has assisted in gold breaking above $1,130. However, buying conviction remains lacking above $1,130. Although buying conviction remains scant above $1,130, physical buying in recent days has been very strong whenever gold drops below $1,120, especially by India. Gold price low season is about to end, enter into 2Q2010 the gold price may likely to move up due to physical demand from most of Asia country. Malaysia gold physical demand also getting stronger because the ringgit value is strong. Now retail price for 916 gold is RM 133 per gram and 999 gold at RM 141 per gram offer a good price for consumers to buy gold. Due to the strong value of Ringgit so now is the best time to buy into gold, anything happen in yuan revalue will also effect ringgit value and recovery of US will also effect ringgit value to drop so since now the ringgit value is high, buy into gold will be a profitable long team investmen...