Gold physical buying interest still up

Report show that We still see great gold physical buying interest on approach of $1,100. But while support for gold is growing, we fail to see sufficient upside momentum to sustain a rally, as the dollar view is for the greenback to strengthen further against the euro however loss value against Asia. This, combined with strong physical gold demand, convinces that gold in euro will move higher but Asia will move lower.

Gold physical buying interest has slowed substantially since mid- February, as indicated by physical gold index which dropped below zero in February — only a few days after the Chinese New Year. A drop below zero indicates that physical selling outpaces buying. However, the index has risen sharply since the beginning of March, and has continued to rise till this week.

In this week Malaysia Gold price was fall to hits RM 116 per gram due to increase of value against US dollar and this keep gold physical buying interest up. This can be see by POH KONG HOLDINGS BHD net profits grew 64.6% to RM7.49 million in the second quarter (2Q) of its financial year ending July 31, 2010 from RM4.55 million in the same period a year ago.

2Q revenue grew 7.4% to RM144.21 million from RM134.24 million in the same period a year ago. Second quarter earnings per share rose to 1.83 sen from 1.11 sen a year back.

The company said in a statement to Bursa Malaysia on Monday, March 29 that the increase in sales and profits were due to higher jewellery purchases during the festive seasons. Poh Kong also said that it “remains positive on its performance for the financial year ending 31 July 2010”.

Physical good buying interest remains strong

For gold, physical buying interest remains strong, but buying interest now seems closer to the $1,094/95 level. Buying backs off as soon as the price approaches $1,110. We still sees an increased risk of a deeper correction in the gold price.

A break below the $1,095/96 level may see gold approach $1,089/86. Thereafter, the 200-day moving average at $1,049 could be the next major support. Resistance is at $1,109 and $1,116. Long gold in euro still looks good.

Gold Look Like Not Ready To Rally Yet

Gold price have go up and down between USD1,130 to USD 1,100. Base on the chart gold may likely to be in this gap for 2 months till Jun 2010 before any major move up or down may review up. Usually gold price hits low between March to May and slowly rally up in 2H of the year so if gold price can hold on this gap, we may see the price start rally by Oct 2010.

Gold price had a strong support on USD 1,100 level so any drop below or at this level will be a good buy to keep some gold.

Gold is testing $1,100 again

Gold is testing $1,100 again, a level which had held on both Wednesday and Friday last week. There is currently good buying just above $1,100. However, while support is strong at $1,100, we believe that the bias now lies to the downside ahead of the US Fed’s next monetary policy move. While we expect no rate change, there may be more signals of future monetary tightening.
Initial tightening is unlikely to come via an interest rate hikes, but rather in the form of liquidity withdrawal. The dollar may find support ahead of the FOMC meeting. Less liquidity would also imply less support for gold.

Gold support is at $1,100 and $1,089; resistance is at $1,109 and $1,116.

Malaysia Gold Price Close At RM 117.75 Per Gram - A Good Buy

Yesterday gold price close low but base on the chart, gold is on the way rally up to the hill. Since begining of 2009 gold price zip zap in a bullish pattern and between two high point is about 7 months. Is it true the pattern forming again so the next high point will at 4Q2010.

Now is the golden time to buy gold.

Gold is the most sensitive to liquidity and interest rates

Gold is heading down despite the weaker dollar since yesterday. With gold above $1,120, seeing little physical buying— which could see gold struggle to sustain rallies above $1,130. In fact, the metal seems set to revisit $1,100. Resistance is at $1,095 to $1,089.

With further indications that China could accelerate monetary tightening, as inflation in China has risen, gold demand may wane. Of all the metals (including base and precious metals), gold is the most sensitive to liquidity and interest rates. However, we doubt that tighter monetary policy in China can affect gold demand much. Rather, we believe that monetary policy in the US will be bearish for gold.

Gold speculative interest is now rising again

Both gold and silver have seen their speculative interest decline sharply since October last year. While speculative interest is now rising again, the levels in US futures markets are still well below levels seen last year for both these metals. The non-commercial net long position in gold averaged 35.5% last year, reaching a high of 40.2% in October. Currently, non-commercial length for COMEX gold stands at 33.90%. For silver, the average non-commercial length was 19.5% of OI and a high of 30.7%. Currently non-commercial length on COMEX is at $23.2%. For both metals, we see room for a rise in speculative interest.

While we expect more dollar strength, we believe because speculative interest in gold is not overextended yet. Therefore, the gold price could fall less when the dollar appreciates further. As a result, we still favour gold in euros and GBP.

Gold continues to find support at $1,130. Gold support is at $1,128 and $1,121, resistance is at $1,142 and $1,148.

Gold is pushing higher in most currencies is a clear indication of good physical buying interest

Gold is above the resistance $1,024/$1,026 level; we expect this level to hold, given that the dollar has depreciated only marginally. However, gold’s rally does open it up to a break above $1,140 and possibly $1,148. Gold has been assisted by some dollar depreciation, but this cannot be explained only by currency movements. The fact that gold is pushing higher in most currencies is a clear indication of good physical buying interest.

However, speculative interest is also rising. We continue to see a steady flow of physical buying interest, which is indicative of good underlying support.

Gold is still struggling to sustain rallies

Gold is testing the $1,024 – $1,026 resistance level again; it had failed to break above this level last week. To me the picture remains unchanged — in dollar terms, gold is still struggling to sustain rallies, and we expect this to continue to be the case.