Gold shrugged off data showing an acceleration in US economic growth

Gold shrugged off data showing an acceleration in US economic growth, as investors remained assured that the Fed’s monetary stimulus plans would not be altered. Perhaps the lower-than-expected rise in the GDP price index (0.3% q/q; consensus: 1.6% q/q) reduced worries that rising inflation might force the Fed to curtail stimulus plans.

After relatively little activity last week, physical buying has begun to gain momentum supported by comparatively low prices. Investor demand is also picking up as political tensions in Egypt prompt renewed safe-haven interest. News that AngloGold has had to shut down one of its mines after a seismic event could also be lending support to gold.

Gold support is at $1,312 and $1,291. Resistance is at $1,352 and $1,369.

Selling pressure resumed on gold last week

After a brief respite, selling pressure resumed on gold last week. With the dollar largely unchanged, the moves were mostly attributable to reduced demand for safe-haven assets on the prospect of a strengthening global economy. The effect of waning investor demand, as evidenced by dwindling holdings by exchange-trade products, was aggravated by the absence of physical buying.

Looking forward, with dollar continuing to track sideways we don’t see much direction for precious metals being taken from the FX market. However, a poor showing on Asian and European stocks as well as US equity futures in the red, points to some relief for precious metals on returning investor demand. Concerns over Japan’s debt downgrade could deepen interest in safe haven assets. Given their stronger fundamentals, we expect attention to be focused on PGMs.

With prices particularly low, we might see some physical buying return to the market, although given the lack of enthusiasm over the past few days, we don’t expect this to lend too much support.

Gold support is at $1,297 and $1,285. Resistance is at $1,336 and $1,361.

With prices particularly low, we might see some physical buying return to the market

After a brief respite, selling pressure resumed on precious metals markets yesterday. With the dollar largely unchanged, the moves were mostly attributable to reduced demand for safe-haven assets on the prospect of a strengthening global economy. The effect of waning investor demand, as evidenced by dwindling holdings by exchange-trade products, was aggravated by the absence of physical buying.

Looking forward, with dollar continuing to track sideways we don’t see much direction for precious metals being taken from the FX market. However, a poor showing on Asian and European stocks as well as US equity futures in the red, points to some relief for precious metals on returning investor demand. Concerns over Japan’s debt downgrade could deepen interest in safehaven assets. Given their stronger fundamentals, we expect attention to be focused on PGMs.

With prices particularly low, we might see some physical buying return to the market, although given the lack of enthusiasm over the past few days, we don’t expect this to lend too much support.

Gold support is at $1,297 and $1,285. Resistance is at $1,336 and $1,361.

A Good Oppecunity To Buy Gold

Gold price had drop since early of this year and the reason is US market is getting better. As we all know US is printing 600b US dollar to help they nation to survive and at the same time pass they problem to us all. We need to work hard to get money but they just print the money out, due to US dollar is the international money so they can do just printing.

Soon most of other country will start to think it is the time to change world currency out from US dollar. So all thing will back to basic measurement, it is gold. Money can be print but gold can not so keep gold will always make you profitable.

Despite a report that gold holdings of exchange-traded products had fallen precipitously

Despite a report that gold holdings of exchange-traded products had fallen precipitously, the gold price has have managed to gain some ground. Gold holdings fell by 31mt, the largest fall in two years, to a level last seen in August. More confidence in the global economic recovery is being cited as a factor in this sell-off. Nevertheless, over the long term, we maintain that accommodative monetary conditions will continue to favour gold. We forecast an average price of $1,430 for 2011.

Already we are seeing a rebound in precious metals as investors expect the Fed to reiterate its commitment to quantitative easing (in FOMC comments out later today). A slightly weaker dollar is helping this recovery in prices. We expect a more positive tone from the Fed concerning the health of the US economy.

However, because of persistent unemployment, we expect no changes to policy. Such reassurance should push gold and silver higher. Gold support is at $1,328 and $1,323. Resistance is at $1,338 and $1,342.

Gold received a blow from increased risk appetite

Gold received a blow from increased risk appetite, as investors bet on the perceived signs of global recovery. Investors have reduced positions in precious metals, especially gold and silver, as interest in riskier assets grows. Even a weaker dollar could not provide much support as gold tumbled to lows last seen in October last year.

Ahead of this afternoon’s release of US consumer confidence, markets appear to be anxious. European stock markets are down and US equity futures are in the red. Improved consumer confidence and consequently greater consumer spending remains key to a strengthening of the US economy. For now the increased anxiety has not translated into safe-haven buying of
precious metals. Nevertheless, should the number disappoint, precious metals, particularly platinum and palladium, should benefit.

Consensus is for an improvement in consumer confidence in January, although we see downside risk, given the recent negativity surrounding the US economy. US house price data is not expected to be of much consequence to precious metals markets.

Gold support is at $1,318 and $1,312. Resistance is at $1,335 and $1,345.

Key to precious metals this week will be speculation surrounding Wednesday’s FOMC decision and the health of the US economy.

A poor start to the week for Asian equities (especially China) indicates lingering fears of increased Chinese monetary conservatism. Nevertheless, precious metals have done relatively well with a weaker dollar and relatively low prices prompting some physical buying in Asian markets. Going into the week, we don’t expect concerns over China to be as dominant as they were last week, especially for precious metals.

Key to precious metals this week will be speculation surrounding Wednesday’s FOMC decision and the health of the US economy. Data flow suggesting a stronger US economy might raise concerns over a possible scaling down of the Fed’s intended $600bn in bond purchases. While we think that a change in policy is highly unlikely at this time, investor worries could see a pull-back in precious metals, especially gold. We advocate buying dips off the back of positive US data flow.

Gold support is at $1,345 and $1,338. Resistance is at $1,357 and $1,361.