Archive for December, 2009
by Omar Kassim | December 17, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1124 and climbed in London and then gained even higher in U.S Market to as high as $1139, it fell back to $ 1133 and ticked sideways and finally settled at $ 1134.50. As per market expectation Fed kept their interest rate as it is, but Fed’s comment for a relatively weak job market to continue restricted the USD index gains and lifted the gold prices. Technical picture is slightly gaining for gold but a close of above $ 1138 could place gold into a neutral trend. Consolidation phase is still in place in gold market and rebounds could be taken as a jobbing opportunity by traders. Expecting gold to continue its correction phase and to take on trend line support established at $ 1117 for today. More »
by Omar Kassim | December 16, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1126 and perceived gains in Asian market trade and then reversed in London and U.S market to trade as low as $ 1110.50. Behind mixed Economic data release in U.S., gold prices saw modest gains and traded to a high of $1127.50 and then slipped back to $ 1116 eventually the market settled at $ 1122. Before a strong gain in gold prices a deeper correction is due in gold. U.S dollar index has been able to take on its key resistance at $ 76.80, which is a bullish factor for USD index and bearish for gold. Gold was shy of the 50 day moving average as the price action was jumping whenever it came near to its $ 1109/1110 level. Rally in gold could be a bear trap as gold is having major resistance at $ 1138. It seems to be like the gold market is gathering sellers to take down its support at 50 day moving average. A dip below $ 1109 could lead gold to $ 1092 this week. Today’s intraday range is seen at $ 1133 and 1119. More »
by Omar Kassim | December 15, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1113 and rose to as high as $ 1127 in Asia before it fell to see a slight loss at $ 1116.75 in London, but it then gained in U.S market to trade $ 1126.50 and finally market settled at $ 1121.75. Gold market was trading much more flat yesterday trading between the range of $ 1116 and $ 1127, signaling that market has yet to recover from the last weeks negative price action. A correlation with U.S dollar index shows that USD Index is overcrowded with sellers and a upside action could be seen soon in U.S dollar, starting today Fed is having its meeting for 2 days. If the Fed gives a positive outlook of the economy that could prompt investors to liquidate the short position in USD and pump money into stocks, this will be off-putting factor for gold. If gold stays above $ 1120 till afternoon trade in London an attempt to $ 1143 could be seen in the market. More »
by Omar Kassim | December 14, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1130 steadily rose in Asia and London to trade to a high of $ 1142, before it fell back off for most of the early hours trading in U.S market and lose its footing to $ 1109, but it then recouped some of its losses to inch up higher and finally settled at $ 1117.75. Traders who were Long in gold liquidated their positions behind a gaining USD, gold found resistance at key technical levels added pressure in gold. Technically the weekly chart gives you an idea about the current drop in price and a close of below $ 1125 is an indication of prolonged correction to continue in the market. Any fundamental developments like deflationary scare can force gold prices to keep a medium term objective of $ 1081 and $ 1034. Expecting gold to find resistance at $ 1132 and to dip towards $ 1116 for today. More »
by Omar Kassim | December 11, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1128 and rose slightly higher in Asia before it fell back to where it opened in London and then rose to a high of $ 1132.00 in U.S market, but it then fell back off for most of the trade to a low of $ 1122 and finally market settled at $ 1124. Mixed economic data’s made U.S dollar index to trade unchanged and the same reflected in gold market. Technically gold has pierced the 50 % retracement level $ 1125 ($ 1025 – $ 1226) and other support levels which indicates to us weakness in gold, today if gold can manage to close above its 38 % retracement at $ 1150 possibility of deeper correction could be subsided and reversal in prices will be established. Expecting gold market to keep alive the longer term correction phase by closing near or below $ 1125. More »
by Omar Kassim | December 10, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1129 and extended yesterday’s after hours losses in Asia and fell to as low as $1125.70 before it rallied back higher in London and U.S Market and rose to see gain as high as $1147.25, but it then fell back off erratically and finally settled near its low of $ 1117. Range bound trading continued in the gold market yesterday, every bounce in prices was taken as a opportunity to sell by traders and gold was capped near $ 1148. Grave selling towards the U.S closing hours pushed the gold market to a 3 weeks low. Open interest in gold is declining and it seems like bullions banks are shorting in the market. 50 day moving average could offer a good support for gold which is currently at $ 1101. Expected trading range for gold today is $ 1116 and $ 1136. More »
by Omar Kassim | December 09, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1157 and saw gains in early Asian trade to trade to as high as $ 1168, but then fell back off for most of the trade in London market and was trading near where it opened. In U.S market gold continued its choppy session and traded to a low of $ 1141 to finally settle near the low. After the U.S market close, gold slipped to a low of $ 1125.50 and was trading at $ 1133 on Wednesday early hours of trade. On the currency market front, Greece credit rating was cut on banking worries driving the Euro down. U.S dollar index gained and continued its rally pushing the gold price down. Any bounce from the current level could be taken as selling opportunity. The break of $ 1137 pulled gold prices down, next task for gold might be to take a temporary run towards its 50 day moving average currently at $ 1098.60. If we see a weekly close below $ 1125 further weakness will be added. More »
by Omar Kassim | December 08, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1160 and fell as low as $1136.75 in late Asian trade before it bounced back higher in London and U.S market and saw a nice bang higher in second session to trade as high as $ 1165, but it finally settled at $ 1153. U.S dollar index continued its impressive gains to last Fridays Jobs data, but Fed chairman Ben Bernanke’s comment that interest rates hike is a long way to go capped the U.S dollar index gains. Gold market is showing its strength by consolidating in a controlled manner, yesterday gold has visited twice the $ 1137 level, the support which it got when recently it fell on Dubai worries. Till we get a close above $ 1175.40 the correction might continue. Gold prices are likely to break the support at $ 1137 and technically 50 day moving average for gold could offer a good support to mark its ending of correction, 50 day moving average is currently at $ 1096. More »
by Omar Kassim | December 07, 2009 | Daily Market Reports, Islamic Gold
On Friday gold opened at $ 1207 and was feeble in Asian and London Market. In U.S market gold traded to a high of $ 1210.50 for a very short session and gold prices tumbled to a low of $ 1167 and further selling was seen in the market after the U.S market close. As we expected gold market saw intense selling and gave a volatile price correction. The fall in gold price on 27th of November was supported by late comers in the market which helped the prices to gain and to march towards the measured target of $ 1236, but gold market found tough resistance near $ 1225 and with major bullion banks being short in the market gold prices tumbled to a deeper correction confirming its reversal of prices. Risk of further deeper price correction is still in close proximity, $ 1109 could be the initial downside target for gold and upper boundary is seen at $ 1175.40. More »
by Omar Kassim | December 04, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1215 and rose to as high as $ 1226 in Asia before it fell back off in London and early U.S market trade to see a low of $ 1203.80, but it then rallied again higher in the closing hours of trade to settle at $ 1217. One way directional movement may soon going to get weaken in gold market, trading volume is getting thin and this market behaviors indicate to us that a violent correction in price can take place. The upper boundary for gold today is seen at $ 1213 and the first support is at $ 1198, if gold gives a weekly close today above $ 1183, bull camp may take on $ 1236 next week. More »
by Omar Kassim | December 03, 2009 | Daily Market Reports, Islamic Gold
Gold opened at $ 1195 and rose to as high as $1216 in Asia before it fell back off in London to see a gain at $1206, but it then chopped its way back higher in U.S market to its days high and finally settled above $ 1,200 for first time in history at $ 1212. Gold is powering itself by marking record high on daily basis, buyers are not getting satisfied with the advancement of prices and it seems like, when we saw a quick drop in gold prices last week all the late comers have entered the market driving the prices above $ 1200. Technically there is no resistance to be suggested, a measured move point towards the figure of $ 1236, if the sellers don’t enter here next stop could be $ 1265. Gold is reflecting the loss of confidence in global leadership and loss of confidence in the paper currency that serves as our transactional money. More »
