Malaysia Gold Investment

Since tuesday was a very busy day for gold, with the yellow metal bursting through $1,300. The triggering of stops saw the metal continue to head upwards, closing the day at $1,309. Gold is taking a breather so far today however, trading sideways and consolidating around Tuesday’s closing levels ahead of US trade. With little in the way of macroeconomic data this afternoon, gold will likely continue to consolidate and track the dollar. Deepavali will be on 5 Nov 2010 and usually month before that India will buy in a lot of gold, however due to the price is high so the buying will be less. Gold price will be supported well due to high demand of gold in 4Q2010.

The euro’s woes continue to be drag on precious metals, while a surge in Ireland’s CDS also points to the uncertainty over the strength of some Eurozone nations. Interestingly however, the impact on the currency markets has been fairly short lived, and muted, with the dollar weakening again heading into the afternoon. The market certainly appears to have become increasingly bored with the Eurozone story, particularly with the potential for QE2 in the US on the horizon. As such, the markets appear to have established a degree of immunity towards these sorts of headlines for the time being, with gold failing to benefit as much from its “safe haven” status as it has done in the past. That said, gold and silver have nevertheless benefited from buying into dips, with that activity helping to support prices. So while gold already reach at 1,300, we remain bullish and maintain this level as a short-term target.

Gold and silver continued to advance to record levels at the end of last week, as a weaker dollar and lingering concerns over the global economic recovery encouraged investors to seek the safety of precious metals. With the dollar regaining some ground against the euro, gold and silver have since lost support. That said, with the current euro weakness largely attributable to the resurfacing of concerns over the stability of Eurozone banks, these fears may well see demand for precious metals continue to pick up heading into the week. Of interest, Central Bank gold sales have plunged, with the Year-ending September 14th seeing gold sales from the IMF and Eurozone banks - under the Central Bank Gold Agreement falling 40% to 94.5 mt. Eurozone sales for the year fell by 96% y-oy to only 6.2 tonnes, with IMF sales making up the balance at 88.3 tonnes. While falling sales are nothing new, the figures are interesting nevertheless with the lack of sales marking a change in the central bank’s mi...

As anticipated, gold has met resistance on its approach to our target of $1,300, with gold unable to move past the $1,296 level as physical selling weighed down on prices. Gold has remained fairly steady, trading around yesterday’s closing levels in spite of a stronger dollar. The market is perhaps holding fire ahead of US trade and this afternoon’s US data, with poor suite of figures perhaps seeing the dollar weaken further and providing the momentum to see gold push past $1,296 and bring $1,300 within reach. Gold support is at $1,286 and $1,281. Resistance is at $1,296 and $1,301.

Precious metals, most notably gold and silver, rallied after the Fed stated its willingness to expand quantitative easing measures to support the US economy. The FOMC said it is “prepared to provide additional accommodation if needed to support the economic recovery” citing a rising, yet moderating pace, of business investment, a reluctance of business to add to payrolls, a depressed housing market and a modest pace of economic recovery. Given gold’s close and positive relationship with liquidity and associated inflationary fears, the announcement saw gold rally in NY trade yesterday. In addition, the fall in the dollar, prompted by fears of currency devaluation, has provided an added impetus this morning. Yesterday’s moves saw gold finally push through the $1,285 resistance level, bringing our target of $1,300 within reach. Standing in its way however has been a significant drop in physical buying, with the latest rally seeing Asianbased physical selling emerge overnight. Gold support...

Friday’s disappointing US data flow, gave the gold bulls another reason to buy the metal, amid concerns that the US economy’s recovery might be faltering. The University of Michigan’s index of consumer confidence fell to 66.6 in September compared to consensus expectations of a rise to 70.0 from the previous month’s 68.9. A weaker dollar has added to gold’s upward momentum this morning, although the $1,285 level continues to pose resistance. As highlighted last week, this resistance stems largely from the physical market and could keep gold range bound below $1,285 for a while. Gold support is at $1,275 and $1,270. Resistance is at $1,285 and $1,290.

While gold is being met with strong resistance on approach of $1,285, we believe it is a matter of time before gold moves higher. There is current resistance from the gold physical market to gold’s quick move from $1,250 to $1,280. The resistance from the physical market (with scrap also coming to the market), may see gold consolidating in the $1,270—$1,280 range for a while. Ultimately we see gold heading towards our target of $1,300 within the coming weeks. We believe, should gold breach $1,300, the metal could rally higher towards $1,320 on the back of technical buying. Gold support is at $1,270 and $1,265. Resistance is at $1,285 and $1,295.