Gold markets did very little during the session on Friday as we continue to tread water around the $7000 level. Just below, we see quite a bit of significant support all the way down to the $1680 level, and as such we would be looking for some type of supportive candle like a hammer or a green one to start buying this market presently.
A long-term trend is far too bullish for us to start selling, and as you know by now we hold physical and ETF forms of gold also. Because of this, we are never actually “short” the market, and will only buy these futures contracts on signs of support or strength. We presently believe that we are in an area that could very well provide a supportive candle, and are simply waiting to see that in order to start buying.
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The gold markets rallied during the session on Tuesday, but found the $1720 level to be resistive yet again. Nonetheless, it does look like we are starting to pick up steam a little bit from the $1700 level, and the FMOC meeting later today will more than likely be the catalyst for the next move in this market.
If the Federal Reserve decides to expand its easing program, we will see gold rise in value. This would be due to the devaluation of the US dollar, and the fact that so many central banks around the world are currently doing the same thing. Because of this, we believe in the long-term story in gold, but would like to see a break above the $1720 level in order to start buying again.
So, my trade strategy is waiting for the $1720 :)
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Gold dipped over 8.00 in today’s session, losing the gains of the last two day. With little market incentive, and an over positive sentiment trades are shedding gold and moving to other commodities. Although the Chinese GDP was disappointing but at forecast, the other reports released today showed a significant turnaround, especially in retail sales and fixed asset investments, as well as industrial production. There is a belief that the Fed’s will reduce their QE as the US seems to be showing signs of a positive recovery, even though the jobless data was mixed today.
The wild card right now is the EU Summit and decisions being made regarding Spain and Greece.
Also South African miners returned to work today after settling their strike. Indian gold buyers have increased their purchases during the wedding season, as prices dip.
Gold and silver today dropped for the first time in three days as gains by the dollar before European Union leaders’ summit on the region’s debt crisis reduce demand for bullion as a store of value. European Union leaders gather in Brussels for two days starting today, where Greek Prime Minister Antonis Samaras prepares to argue for a two-year extension to meet the country’s bailout targets.
French President Francois Hollande says efforts to stem the turmoil that began in Greece could unravel if the EU fails to deliver on its promises. The euro fell for the first day in three against the US dollar, declining 0.3 per cent.
recommendation: buy to gain a little, then wait for pullbacks to buy back up to 1770 area
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After consumer confidence data in the US printed much higher than forecast. Gold has been trading in a very thin range between $1760-1780 levels all through the week. Optimistic economic outlook and subsiding risks from the Euro zone has reduced investor’s attention on bullion.
Providing signals of a reviving US job market, new claims for unemployment benefit fell to the lowest level in four years last week and agreement for holding talks over a territorial dispute between China and Japan reduced bullion’s appeal. The dollar index slipped from its one month high while the Euro retained gains after the IMF backed giving more time to Greece and Spain to reduce their budget deficit. Meanwhile, holdings of ETF inched down for the first time in two weeks but were still close to its record high. At the same time physical activities are almost lackluster as prices are trading near multi-month highs. Demand from the world’s top consumers India and China are expected to surge in the coming months as both countries enter the peak consumption season that could boost demand in the physical market.
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Act of IMF revised its growth rate will slow down has hit the market very hard.
Currently, the market is waiting for a major financial stimulus package from the PBoC.
Demand for physical gold is expected to rise this month due to upcoming festive and marriage season.
Speculative interest in gold remained strong with the holdings of gold backed exchange traded funds rising to historic high on Monday. ETF holdings rose almost 6 percent over the past two months. While high prices have been putting a lid on physical demand, India's demand is Likely to prop up in the coming months due to upcoming festive and marriage season. Meanwhile, German Chancellor Merkel's visit to Greece this week will be the other crucial event Curiously investors watch out for getting a direction on bullion.
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USD continues to strengthen against its opponents. Speculation is happening to the state of the EURO zone economy adds to concerns of investors to the gold price. German Chancellor Merkel's visit to Greece today will be the other crucial event Curiously investors watch out for getting a direction on bullion. A report from the World Bank says that economic growth in East Asian countries Including China will drop to the weakest level since 2001 in the current year.
Concerns over global economic growth provide firm support to the bullion. Meanwhile, Speculative interest in gold remains high with the net long position in U.S. gold futures and options again surging to its highest level since the end of February. Physical activities from Asia remained dull but active participation from China is expected in coming days as their markets reopened today after a week long holiday.
Gold-Euro correlation has eased again to 0.85 from its early peak of 0.96. Over the weekend the IMF's revised global growth. The International Monetary Fund has cut its global growth forecasts for this year and 2013 and called on Politicians in the eurozone and the U.S. to take "decisive" steps to restore confidence, a German newspaper said. Citing excerpts from the IMF's World Economic Outlook to be released early next week, the business daily Handelsblatt said that the Washington-based body predicted world economic growth of 3.3 percent in 2012 and 3.6 percent in 2013.
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The gold markets fell during the Friday session after the NFP number came out better than expected. This got a little bit of the bit into many of the other markets, and as such it now looks as if the gold market is trying to take a little bit of a breather.
Today, we are buying dips by using futures markets, and the CFD markets. This allows us to use leverage on signs that the market will strengthen, while adding to a position that is already long of gold via the GLD ETF. By doing so, we are continually long gold and therefore no matter what happens will continue to gain every time it does.
The Federal Reserve will continue to print US dollars, and as such the precious metals in general will do well. Looking at the fundamentals, you can see that not only the Federal Reserve is working to devalue its paper fiat currency, but so is in the Bank of Japan and that more than likely the European Central Bank. With so many central banks working against the value of their currency, it makes sense that precious metal such as gold continue to climb. With that being said, we are not buyers every time it pulls back.
Once we get above the $1800 level, we think that this market will continue to rise rapidly. Ultimately, we expect to see $2000 an ounce in this market. In fact, we expect to see a much sooner than many other people would suspect.
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Gold fall a few dollars in a directionless day with little news and even less economic data, as markets await news from Spain. In a surprise move today, the RBA reduced interest rates in Australia by to 3.25% from 3.5%. Trade was thin as Chinese markets remained closed for a week-long holiday and investors awaited the U.S. government’s NFP report scheduled for Friday. Analysts expect 113,000 workers to have been added to non-farm payrolls in September, or increase from 96,000 jobs in August.
Purchases of physical gold ETFs continue to increase. At the same time, the supply of gold is not increasing much. Japanese pension funds have begun buying gold, as others around the world may as well. Central banks around the globe have upped their purchases also.
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Although there has been a strengthening of the dollar since mid-September,
gold is still relatively strong. Since the U.S. FED and ECB stimulus on the market in early September, there has been a bid in the market. This is one reason why gold is capable of printing its record high on Monday. As long as there is demand for risky assets and the investors still doubt the safety of the USD, then
gold will still be firm today.
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Spot gold, stretching its previous session gains, advanced towards its seven month high it hit the previous week in tandem with movements in other commodities.
Spot gold prices gained 0.12 percent taking cues from optimism that Spanish measures to reduce its budget deficit may raise prospects that the nation might qualify for the international rescue plan. This led to rise in the risk appetite in the global markets in initial part of trade. Mixed trend in the DX also supported an upside in the gold prices. After the release of lackluster data in the US with consumer sentiment falling and Chicago PMI printing below 50, gold and silver both declined to show losses for the day but still positive for the week and the month.
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Gold managed to climb in late trading yesterday as the negative data releases from the U.S.. In early trading, gold was also overshadowed by concerns about economic conditions in the euro zone. Anti-austerity protests in Greece and Spain raised investors' concerns over the zone's ability to Contain the debt crisis. Recent moves in gold were in tandem with the moves in the Euro and correlation between both of them is above 0.96, the highest level since the start of this year.
Meanwhile, demand for physical gold in Asia remained stable, but is expected to soon rise at the beginning of next month owing to the festive and marriage based demand from the key consumer, India.
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Gold traveling below its trendline along with profit-taking by investors coupled with concerns about global growth and unresolved problems are beryangsung in Spain and Greece.
USD Index is skyrocketing also encourages the decline in gold prices today. Also, the precious metals on this day have Decided to follow the weak raw commodity sector, roomates is pressured by the risk aversion in the market place Wednesday.
In addition, There is a "risk-off" mentality trader in the market place Wednesday morning, as the European Union's sovereign debt crisis is back on the front burner.
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As noted in
previous analyzes that GOLD will examine its trends line ... and that's what happened. Currently, Gold is testing support at around 1742, this line, which is below its trend, GOLD will be deciding whether to continue the journey to the south or will rebound back.
A little glance on stochastic, it looks like this is a good time to buy gold for the short term.
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Sentiment improved after the gold trade rose in markets worldwide in speculative movements of central banks to spur economic growth will stimulate demand.
Pricing is based on a strong dollar to put a good performance against the euro after the data of German business Sentiment fell for the fifth consecutive month in September increasing fears of recession. The dollar index recovered from its minimum multimonth while the euro fell to low levels week. Bullion is moving in tandem with the euro recently with the correlation that is placed at the level higher this year. However, investors are in pending the outcome of the major economic releases of United States as the GDP, personal consumption and information on the confidence in the next few days to suggest new address for gold. The increased interest in the ingot has attracted more investors to Exchange Traded Funds with physical holdings of gold ETF rose to record high yesterday. Physical holdings of SPDR, the global exchange of gold backed top goodwill and touched a highest level. The demand for physical gold seems stable, but is expected to increase soon in the middle of the key of Diwali and demand marriage season. However, demand from China, the world's largest consumer of the metal likely to wet in the coming days due to a week's holiday on account of the national day from this weekend. Get more information here:
All About Investing in Gold (All About Series)
.
It's just that technical analysis is yet willing to support massive purchases
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Several economic stimulus taken by some central banks in most of the world, providing initial gains for gold prices.
In order to reduce costs and meet the conditions of international aid package sovereign, Spain is considering the freezing of pensions and increase the retirement age. The increased interest in bullion has attracted more investors to Exchange Traded Funds, the largest gold ETF in the world, the SPDR Gold Trust said its holdings reached near the highest level since July 2010. Moreover, the net long positions of speculators and traders in gold futures and options U.S. rosy at the highest levels in nearly seven months last week.
Despite the induction of monetary stimulus from central banks of the U.S., the Eurozone and Japan, investors continued to worry about the prospects for global economic growth, dragging commodities and equities. s and concerns over economic growth in China refrigeration market remained under pressure. This week, while the focus of investors' confidence will be on U.S. data and the Euro Zone, durable goods orders and the final quarter U.S. GDP.
While wait the market to react you can ad this on your reading list:
How to Master the Basics and Become a Successful Commodities Investor
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The gold market surged during the Friday session as the 1775 level was broken to the upside. However, as the market approach the $1800 level, it did run into significant resistance and enough in order to push it back down form a shooting star for the session. This does of course suggest that the market is running into serious headwinds at the moment, and the longer-term charts do of course back this thought up.
However, those hammers do suggests that we may be going more sideways than down. Obviously, the market is in overbought state over the last couple weeks, and a sideways move would be welcome. It would simply allow more investors to get involved. When look at it from that point of view, gold should be a buy on dips going forward.
As for selling this market, there simply far too many support levels to consider. Looking at the chart, we see $1760 of support, we see $1740 support as well. On top of that, the $1700 and $1640 levels also look very supportive. In other words, selling this is going to be option anytime soon. At any of those levels on a pullback, if we saw any types of support we wouldn’t hesitate to go long and over fist.
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After having lost to the 1755 area, gold finally
managed to pull back and closed in the area of 1767.
Today investors will concentrate on further monetary action from China. China's manufacturing activity contracted in this month. along with the strengthening of the USD after surprisingly
Philladelpia FED data released and a declining unemployment rate, some market participants began to think that the economic recovery is imminent.
This has led some speculators to sell gold to take profit.
And the challenge for gold in order to climb higher again located in the area from 1777 to 1780.
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After the Gold Market pretty quiet yesterday, where the
bulls take a rest position after running quite fast in three weeks. Analysts still believe that this rally will continue. Looking for buy position when encountering support line is the best option.
Currently there is support dikisaran 1740, 1700 and the deepest is 1650. And support area is anticipated by traders will be touched in a not too distant future.
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Gold does not change significantly the day yesterday, as traders try to decipher market movements and central bank policy. Yesterday, the
BoJ introduced a surprising additional fiscal stimulus.
Meanwhile, one of the sources of China's finance ministry revealed that the risk of rising inflation and the possibility that China also needs economic stimulus. Surely the market would be very concerned if it turns out china economic data would show significant weakness. Today, China's economic release will be the Highlight of the day.
Nevertheless, # USDX is still in a bearish pattern and failed to break 79.2.
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Gold declined from a seven month high after the euro and risky assets and the economic stimulus announced by the FED. The FED open ended program of quantitative easing in a view to urge economic growth plan and the bond buying by the European Central Bank raised global inflation.
Meanwhile, # USDX remains stable at the lowest point during the last six months. However, demand from India is expected to pick up in the coming months amid key festive and marriage season. And at the same time, a diplomatic crisis between china and japan will also drive gold to rise again.
Therefore, gold is still a
continuation of the yesterday's situation.
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