Gold Price Under Presure

With the dollar trading much stronger yesterday, we would expect the gold price to remain under pressure despite the fact that there are good physical buying interest in gold whenever the gold price dips below USD940. But investment demand is under pressure due to the stronger dollar.

ETF buying is being triggered by the stronger dollar, and this selling is likely to outpace any physical buying. On Friday, there was sizable ETF selling in New York, which saw the gold price gap lower USD10, from USD953 to USD942. While the dollar is finding resistance atUSD1.4100 against the euro, a break below this level could see more sell stops triggered, with more large movements lower in the gold price. We see support for gold at USD933 and USD929, with resistance at USD942 and USD959.

Public Bank Gold Investment Account as at 17/08/09 3:51 PM

	Selling Price	Buying Price
1 gram	RM 110.1100	RM 105.8200

Gold Market Is Quiet

The gold market is quiet. While Eurozone inflation last week has once again confirmed that current inflationary pressures remain non-existent, the market will be focusing on CPI figures in the US later this week. Expectations are that inflation will remain subdued in the US for now.

However, we will also look at the US industrial production growth figures to see whether demand from the industrial sector is improving. Should growth figures show a marked improvement inflationary expectations may also climb faster.

Gold is finding very good resistance at $960. A break above this level could see the metal test $972. Support is at $952.

Gold Support is at US960 and US954. Resistance is at US969 – US970

Gold managed to consolidate above USD960 yesterday. However, it remains at levels where I think have seen strong resistance in the past year. Base on a report I read yesterday from Standard Bank, they is fairly a large volumes of scrap gold coming to the market. The scrap flow should provide some resistance. But, given the current high correlation between gold and the euro/dollar exchange rate (10-day correlation currently at 0.87), they will look to the dollar to determine gold’s intra-day moves.

Support is at US960 and US954. Resistance is at US969 – US970. A break above this level could see gold test US977.

Public Bank Gold Investment Account as at 06/08/09 3:50 PM

	Selling Price	Buying Price
1 gram	RM 111.0600	RM 106.7200

Expect Sideways Or Lower Gold PricesToday

A rally in crude oil prices during New York trading yesterday spilled over into the precious metals, with gold climbing from USD951 to USD970 in NY trade. Investor profit-taking during in Asian trade this morning, has however seen prices retreat to USD963. Expect sideways or lower gold prices today. The larger rally is still going, this is merely a small correction.

Back home to Malaysia, Gold price in RM still moving along with world gold price and currency exchange between US dollar with RM still keep stable around RM3.52 per dollar. Gold demand in Malaysia may see some increment toward Hari Raya and Deepavali.

Public Bank Gold Investment Account as at 05/08/09 3:51 PM

	Selling Price	Buying Price
1 gram	RM 111.1900	RM 106.8600

Gold Price Likely To See A Broken USD960 Level This Week

The dollar plummeted yesterday, from $1.4250 against the euro to $1.4440. With risk appetite rising, US Treasuries are being sold off — leading to dollar weakness. Equity markets continue to rise, and the S&P broke above the 1,000 resistance level yesterday for the first time since November 2008.

Eurozone PPI came in at a slightly better-than-expected 0.3% m/m rise. This is significant, in light of tomorrow’s ECB interest rate decision. With inflationary pressures higher on a m/m basis (although still very low), it adds to the reasons why the ECB might keep rates at 1% — something we view as supportive of the euro.

















Gold failed to take full advantage of the dollar. There was good physical selling with gold above $960, a pattern which we expect to continue. Gold resistance remains in the $960 – $962 area. A break below $950 could see gold test $945, and then $935.

Two possible outcomes are (1) surprise dollar rally, and (2) no dollar rally. If we get a surprise dollar rally off, say, 74, then gold won't pierce $1,000 for 3 - 6 months. If no dollar rally ensues, the gold price will break thru $1,000 early in the fall, then run to US$1,300 very fast.

Short-Covering Helped Push Gold Above USD950

Against our expectations, gold pushed higher on the back of the much weaker US dollar. After US GDP data showed that the US economy had contracted only 1% in Q2:09 (consensus was for a 1.5% contraction), the greenback depreciated quickly, from USD1.4100 to USD1.4250. The New York gold market was caught short, and short-covering helped push gold above USD950.

Should gold stay around $955 today, we expect decent volumes of gold scrap to enter the market. But at these price levels, resistance to a move higher is once again strong. We see resistance at USD960 – USD962 and USD970.

Support is at USD940 and USD923.

Gold Likely To Broken USD980 Level In This Month

In month of July gold price was zip zap up and down between USD920 to USD950 due to US dollar currency. The US DOLLAR rallied 100 basis points quite suddenly, sending gold & silver into a sharp correction. Ysterday that all reversed.The US DOLLAR INDEX fell 100.1 basis points back to the very scraping bottom of its range, 78.317. Now this either confirms that 78.33 bottom on 2 June & 28 July, or, it will break thru that 78.33 level to drop another 200 bips, and maybe hit 76. Remember, when markets repeatedly test a resistance or support level, chances are they will break thru. More downside is most likely US Dollar course, and the same reason Gold price may likely to broken USD950 level soon.

Malaysia gold price may work the same due to conversion currency between Malaysia and US Dollar likely to broken RM108 per gram level.

Public Bank Gold Investment Account as at 31/07/09 3:51 PM

	Selling Price	Buying Price
1 gram	RM 108.7100	RM 104.4600

today opening will be jump RM2.00 in both selling and buying price.