Helmuth
08.07.2007, 20:29
Gold extended recovery on Monday (July 2nd), relying on the 652$/oz level as a supportive platform during the first part of week 27, but with investment sentiment for the metal hanging on a silk wire. After a nosedive through the 650$ support level on Thursday, daily charts suggested a continuation of the recent downwards trend. However, favorable fundamentals coalesced on Friday, keeping gold from going head under, as the Euro neared all time highs against the dollar, fueled by rate differentials and solid growth in the Euro-zone.
Gold’s advances on Friday can be interpreted as a bullish move, although – considering fundamentals and their historical performance in relation to gold - can hardly be described as surprising, but rather as “lackluster”.
For the week to come (week 28), gold is on the verge of breaking its downwards trend, with trend resistance emerging near 656$/oz. A decisive break upwards may speed up gains, although cautiousness is urged in a market largely controlled by large speculators who exert heavy influence on the trend, rather than it [the trend] being dictated by physical and investment supply/demand. This may give rise to the risk of misinterpreting gains initiated by short-covering as one-way bullish momentum.
komplettes: http://goldessential.com/index.php?option=com_content&task=view&id=97&Itemid=29
Gold’s advances on Friday can be interpreted as a bullish move, although – considering fundamentals and their historical performance in relation to gold - can hardly be described as surprising, but rather as “lackluster”.
For the week to come (week 28), gold is on the verge of breaking its downwards trend, with trend resistance emerging near 656$/oz. A decisive break upwards may speed up gains, although cautiousness is urged in a market largely controlled by large speculators who exert heavy influence on the trend, rather than it [the trend] being dictated by physical and investment supply/demand. This may give rise to the risk of misinterpreting gains initiated by short-covering as one-way bullish momentum.
komplettes: http://goldessential.com/index.php?option=com_content&task=view&id=97&Itemid=29