Archive for February, 2010
by Karlo Alfredo | February 25, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1103 and saw narrow gain to $ 1106.50 in Asia. In London Market it fell to see as low as $1090, but it then climbed back up in U.S market to $ 1104 and ultimately it fell back and closed at $ 1096.50. Bernanke’s continued assurance to keep interest rates at exceptionally low levels for an extended period knocked down U.S dollar index initially but it still kept its key levels intact. Traders might have a perception that a slow economic recovery will lead to low investment demand in commodities sector, which might have wane Investment buyers in gold. Contradicting factors like euro currency is weak but other commodities and Crude oil are firm is limiting the fall in gold price. Technically gold has broken the support at $ 1098 and trading near to $ 1092. Expecting gold find resistance $ 1098 and revised downside target being $ 1078. More »
by Karlo Alfredo | February 24, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1113.40 and rose as much as to $ 1121 in Asia. But it then fell back off for most of the trade in London and U.S market to a low of $ 1098.90 and ended near its day’s low of $ 1099. Disappointing Consumer Confidence report sent the U.S. dollar index and treasuries higher on risk aversion and safe haven demand. On demand worries crude oil and copper also fell yesterday, whenever there is a deflationary fear in the market gold has always come under pressure. Gold Continues to be traded well within our expected trading range between $ 1098 – $ 1125, gold has resistance at $ 1113 and support lies at $ 1098, probability of breaking the support is higher for gold with next target $ 1092 and $ 1086. More »
by Karlo Alfredo | February 23, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1124.50 and swiftly turned positive in Asian market near to $ 1130. In London market it fell back and continued to drift lower in U.S market to as low as $ 1109.50, it rebounded couple of times from its low but finally market settled at $ 1112.50. U.S dollar index is consistently holding on its key levels, which is pushing the currency down. Gold had consecutively failed to cross above its current resistance found at $ 1127/ 30. Technically gold has gained some upside momentum from last Fridays close, but fundamental news of IMF gold sales and discount rate hike from Fed has punched the prices down. It seems like a tug of war between fundamental traders who intend to find gold prices much lower than the current levels and technical traders who trade on momentum gains. Gold might continue to be on the trading range of $ 1098 -$ 1125, till it finds a good reason for direction. More »
by Karlo Alfredo | February 22, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1110.90 and fell as much as to $ 1100.50 in Asia. But it then rallied back higher throughout most of trade in London and U.S market to a high of $ 1126.50 and finally settled at $ 1121.50. Economic data release helped equity markets to climb lending some support for the gold market. Range trading continued in the gold market for most of the sessions in U.S market and towards the close it quickly traded above $ 1120. It’s a positive factor for gold to hold the price above $ 1120, but each run towards $ 1127 is met by good selling. Gold could mark itself within a trading range of $ 1098 and $ 1127 for this week and a convincing break of above $ 1127 could take us to $ 1141. More »
by Karlo Alfredo | February 20, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1106 and found support near $ 1098 in Asia. It climbed back higher in London & U.S market to see gain as high as $ 1123.50, but it then fell back to $ 1115 and finally settled at $ 1118. U.S dollar index rallied before the economic data release, worse than expected Unemployment claims made U.S dollar to retreat and gold to rally. It seems like market has absorbed the IMF gold sales and gold was well supported at $ 1098. Gold has made 3 days consecutively failure attempts to trade above $ 1125 / 27. This shows selling pressure is mounting on gold at $ 1123 – $ 1127 levels. Expecting gold to attempt to break the support at $ 1098 to give way to $ 1092 and $ 1078 support. More »
by Karlo Alfredo | February 18, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1118.50 and rose as much as to $ 1127 in London market. In U.S market gold exhibited choppy trading sessions as low as $ 1112, but it then rallied back higher to $ 1121 and finally gave up its gain to close at $ 1118. U.S dollar index climbed behind a better than expected economic data which supports to keep higher interest rates sometime in the future. In U.S market gold came under selling pressure which continued throughout the majority of the session. Even though Euro gave up its most of the gains made in the globex market gold holded relatively well, but later it came under further selling spree. As we anticipated technically gold has formed a double top and closed below $ 1121, gold has fallen below its trend line and in early hours of Thursdays trade gold was trading near its support $ 1098. Fundamental news that International Monetary Fund plans to sell 191.3 tons of gold has weighed on the spot gold prices which might have pushed it lower. Gold resistance is seen at $ 1113 and support lies at $ 1098. More »
by Karlo Alfredo | February 17, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1099.50 and traded consistently above $1100 in Asian market. It then advanced in London and U.S market sessions to as high as $ 1121.50 and ended near to its high at $ 1118.50. On Iran worries oil climbed above $77 and U.S dollar index fell significantly back below the 80 level. Greece worries are easing which has helped Euro to gain against U.S dollar. The much awaited close of $ 1120 is near in gold and yesterday it has closed just near to the key level giving us a multifaceted trend. Technical picture has improved in gold but resistance is round the corner at $ 1125 the February high. If gold succeeds to clear the $ 1125 next topside resistance is seen at $ 1138. A failure to take on $ 1125 and a close below $ 1121 could be marked as an end of the current run. More »
by Karlo Alfredo | February 16, 2010 | Islamic Gold, News Releases
Over 35 experts from the Dubai gold industry recently gathered together to mark the sixth anniversary of the formation of the Dubai Gold Advisory Group (DGAG) – an initiative of the Dubai Multi Commodities Centre Authority (DMCCA). The Group’s mandate is to provide strategic insights, advice and expertise to develop the gold industry in the emirate. More »
by Karlo Alfredo | February 15, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1095 and saw slight losses in Asia and fell in London to as low as $ 1077.75. It then rallied back higher in U.S market to a high of $ 1092.50 and finally settled at $ 1087.75. Last week U.S dollar had a strong run against the euro and other currencies. It was reacting to market concerns over European financial and economic conditions. Gold has found some stability in price last week but its downside momentum is still in place. U.S market is closed today for Presidents day, thin volume trade could carry gold near to its 100 day moving average at $ 1100 and gold is expected to test its recent lows at $ 1075 this week. More »
by Karlo Alfredo | February 13, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1071.60 and traded higher in Asia. In London it rose to as high as $1086 to fell back off in U.S market to a low of $ 1074.60, but it then rose to a new session high and finally settled at $ 1094. U.S dollar index reversed its early gains and turned lower after the European union announced its backing to support Greece. As if like a mirror move gold found resistance at $ 1086 / 87 levels initially and slipped back to $ 1075. Additional follow through buying facilitated gold to get higher from $ 1075 to break its resistance at $ 1086 and positioned itself near $ 1097 its 21 day moving average. Gold may perhaps stay below $ 1097 resistance for today as U.S market will be closed on Monday for Presidents day. More »
by Karlo Alfredo | February 11, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1077 and climbed to $1082 in London before it fell to $ 1062.50 in U.S market. IT then rallied back higher in the closing hours of trade and finally settled at $ 1074.75. U.S dollar bounced from its days low in the early hours of globex trading but gave up its initial gains behind the comment made by Federal reserve chairman Ben Bernanke that Interest rate is not going to be changed for a prolong period. That news might have triggered buying spree in gold which helped it to gain from its intraday low. Gold made another attempt to retrace higher and closed near $ 1075 which seems to be slightly helping it to gain some upside momentum. Downside risk for gold is higher with resistance at $ 1086 and $ 1097 its 21 days moving average. More »
by Karlo Alfredo | February 10, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1063 and traded mostly higher in Asia and London and spiked up to $ 1079, before it fell back to $ 1070, but in U.S market it rose to a new session high of $ 1083 and finally settled at $ 1076. Speculation of the Euro zone rescue for Greece might have helped euro to gain against U.S dollar. U.S dollar index is trading near to its key support and a bounce could be seen from its current level which could cap gold’s gain. Gold was oscillating around $ 1065 it’s 50 % Fibonacci retracement and has closed higher than that level. Technically gold could add upside momentum to test the $ 1108 /1110 level if today it can close above $ 1080. Trading range for gold is seen to be between $ 1071 and $ 1092. More »
by Karlo Alfredo | February 09, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1067 and extended its gain in Asian market to a high of $ 1073. In U.S market gold plunged to a low of $ 1061, but it then chopped its way back higher to its intraday high of $ 1073 and finally settled at $ 1065. Gold showed some stability after its last Fridays drop in prices. A quick drop in prices has resulted in steady flow of buy orders into gold. So far gold has managed to push to a high of $ 1,073 /1074. If gold can hold above $ 1080 for couple of days there is much better chance of range trading rather than making another leg lower. As gold is finding it difficult to trade higher than $ 1074, expecting gold to target its downside support at $ 1045 – 1033 and 1028 in the near term. More »
by Karlo Alfredo | February 08, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1062.60 and rose to $ 1067 in Asia before it plummeted to see as low as $ 1050 in London and then chopped its way back higher in U.S market to trade steadily above $ 1054, but it then fell to a new session low of $1044 and finally settled at $ 1052.50. The grinding down in gold prices has slowed speculative buying. Investor’s dumped gold as the dollar gained grip last week, and gold prices descended more than $ 30 per ounce on weekly basis. Technically sell signal is visible in gold as it has not yet entered an oversold territory. Gold is likely to challenge support levels at $ 1045 – 1033 and 1028 in the near term. Resistance is seen at $ 1078.
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by Karlo Alfredo | February 05, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1109 and traded slightly lower in Asia and London before it tumbled to a low of $1060. Gold market attempted for a recovery but failed and finally settled at $ 1063. Sellers became aggressive in gold yesterday after a disappointing U.S. jobless number and renewed concern over sovereign debt levels in some European nations, which might have offered a strong bid to the USD. As equities came under pressure fund selling quickly took gold below $ 1100 and triggered the stop loss just below the December low $ 1075. Dollar Index breached the 80 level to the upside brought in another wave of selling and downside support in gold was breached as a mirror effect. Gold has positioned itself into a broader range; rally in gold could be taken as an opportunity to sell. Next downside target of gold may perhaps be to trade $ 1050 and $ 1033. More »
by Karlo Alfredo | February 04, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1114 and climbed higher in Asia, extended its gain further in London market to a high of $ 1124.60, but it then fell back off for most of the session in U.S market and slipped to a low of $ 1106.80 and finally settled at $ 1109. Investment demand might have carried gold higher but it found technical resistance at $ 1125 the 50 day moving average. U.S dollar index rose eyeing ECB and Bank of England’s rate decision. Despite the pressure from U.S, china has not taken any steps to review its Yuan which is undervalued. If the U.S retaliate by devaluing the U.S dollar that could be an optimistic factor for gold. Technically gold could find buying pressure at $ 1103 / 1104, a break of $ 1103 could lead us to $ 1090 today.
Data and Events for U.S today:
• Unemployment Claims is expected to be at 461k.
• Factory orders month on month is expected to be 0.7%.
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by Karlo Alfredo | February 02, 2010 | Daily Market Reports, Islamic Gold
Gold opened at $ 1079.70 and fell to a low $ 1076.50 in Asia. London market saw flat trading and gold steadily climbed in U.S market to a high of 1107 behind a rallying equity and oil market, finally gold settled at $ 1104. Short covering might have triggered the gold prices near to $ 1100 and the strengthening oil prices helped gold to peak to a high of $ 1107. Sometimes markets tend to overreact to economic data. Budget proposal release, which showed a deficit of $ 1.56 trillion, might have paused U.S dollar gains and this could be one possible reason for gold to climb. Gold’s next resistance is seen at $ 1118/ 1120 levels and a close above these levels could bring back the bullish sentiment. More »
by Karlo Alfredo | February 01, 2010 | Daily Market Reports, Islamic Gold
On Friday gold opened at $ 1086 and was trading flat in Asian and London Market. In U.S market gold briefly spiked higher behind a stronger than expected GDP report to a high of $ 1090.25 before it fell back off to a low of $ 1074, but it then rallied back higher to finally settle at $ 1082. Strong rise in U.S dollar is continuously adding pressure in gold as it is evident that gold is consecutively closing below the 100 day moving average, physical demand for gold is lending a hand to stem the pace of decline. A break below $ 1074 opens up the possibility of $ 1030, in the meantime a temporary bounce could be seen from $ 1065 (50 % Fibonacci retracement from $ 1226) which could be capped at 100 day moving average currently at $ 1092.
Data and Events for U.S today:
• Core PCE Price Index Month on Month expected to be at 0.1%.
• Personal Spending month on month is forecasted to be at 0.3%.
• ISM Manufacturing PMI is expected to be 55.5
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