Whether the high price of gold icing on the cake

Gold opened yesterday jumped 879.95 U.S. dollars, the Asian time continuation of jump set to open up the trend, the highest touched a high of 890 in the near future, lowered into the lowest 872.75 U.S. dollars, to close at 879.65 U.S. dollars eventually. Yesterday, I expected the gold price could jump directly to a breakthrough on the basis of 900 U.S. dollars, but obviously the time is not ripe, gold prices recovered some of the gap, once again into a high consolidation. Markets are concerned about the possibility of high gold prices above the icing on the cake.


Fundamentals, geopolitical tensions have recently become more concerned about investors a theme, we do not need to bother in the end to the conflict in Gaza from the economic level, the impact of the price trend, relative to the wind as waves of the tsunami of financial, geo-political conflict On the global economy have a direct impact on the objective or limited. However, as long as investors are concerned, it will certainly have an impact on market trends, we still have eyes the development of the situation in the Gaza Strip. It so happened that, at this time, the world's largest gold ETF fund holdings of gold reached a record level of 775.33 tons, these institutions also optimistic about the coming year, the trend of gold. This is no doubt the majority of gold to retail investors as a signal the market's largest gold long-term investors are doing more than gold.


Let us look at the economic fundamentals, the UK house prices in December dropped 0.9 percent on the British house prices for the third consecutive decline in 15 months, the British housing market weakness in the United Kingdom showed that the economic situation is getting worse. Because of concerns about Britain's economic prospects, sterling against the dollar also hit a new low in the near future. In addition, this week of data is an important index of U.S. manufacturing and consumer confidence. The Chicago Federal Reserve Bank said yesterday the U.S. Midwest manufacturing index hitting a 12-year low. And tonight's Chicago Purchasing Managers index will also give a general expectations. I still do not optimistic about this week in the U.S. within the movement.


Technical level, gold prices and a series of wide open jump, gold broke through the 850 range in the vicinity of the shock. But the high price, there have been shocks of the situation, the fight is still relatively strong Straddle. When high after the arrival, RSI recent indicators for the first time in 80 years or more, so there have been only gold technical pressure. In my analysis, gold has been fundamental in the vicinity of 872 to find a bottom, or gold can be high in the icing on the cake. Four hours from the map, the flag at the top of the form, despite the decline yesterday, but closed at no less than the price jump, which is expected to rise still.

Operation: low to do more thinking today, the 872-875 range to buy, stop loss 869.


Current gold price: 877 U.S. dollars

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