Huijin network, June 23-a
Rising gold price recorded a fourth consecutive day on Wednesday, but from intraday highs, United States Federal Reserve Board Chairman Ben gave no longer provided in support of monetary policy implied, the Fed cut on United States economic growth expectations, saying the pace of economic recovery slower than expected, the job market remains weak. However, the . United States Federal Reserve Board will end as scheduled in June its Treasury purchase program, and there is no issue of new measures to boost growth and jobs plan signals. Gold Futures rose sharply after publication of the policy statement, August gold futures contract after touching 1,559 per ounce. 00 m, but then quickly spit back some gains. The New York Mercantile Exchange, most active August gold futures contract trading and settlement rose 7 dollars per ounce to 1,553.40 dollars, up 0.5%. June gold futures settlement prices rose US $ 6.9 to 1,552 per ounce $. 90 per cent 0.5%. Market investors believe market reaction to the Fed declared the dull, because its content is not new; markets have all messages are expected, however, confirm that the employment situation is much worse than expected before, because the employment downturn may hold interest rates at low levels. However, gold investors to a relief, because maintaining the accommodative monetary policy stance of the Federal Reserve eased market concerns over the Federal Reserve may raise interest rates in advance of emotion. Super low interest rates is an important supporting factor for gold. Yesterday from the United Kingdom’s message also stimulated the rise in gold prices, United Kingdom June 8 meeting of the Central Bank on Wednesday announced record shows that United Kingdom’s monetary policy Committee considered that the prospects for economic growth weakens, some members raised the possibility of quantitative easing in the future, Sterling-denominated gold prices to record highs again. European debt crisis continues to ferment, the International Monetary Fund (IMF) has warned that if they lost control of the sovereign debt crisis in Europe, the global market is likely to be affected. Market to lose confidence in solving the problem of short-term and long-term capacities in Europe, would lead to rapid fluctuations in asset prices. Facing possible sovereign default and banks suffered a run on the possibility of Greece who are serving on all deposits to buy gold. Royal Bank of Scotland analyst Nike·moer says, “gold inevitably and Greece associated event, gold and silver have become the market to worry when the crisis spread to make investment options. The price of gold to rise is mostly due to safe-haven buying. ”
1. for gold prices and the opening of institutions managed funds comparison charts (the yellow line for the gold, white-line for the opening of institutions managed funds) (picture from: Bloomberg)
In the face of funds rebounded sharply after the opening lows since May, on the map we can see clearly, despite the recent gold prices near record highs, but as a major institutional investors opening and not reaching new highs, as the volume of managed funds opening gradually higher, is bound to drive the gold price reaching new record highs.
Outlook: huangjinrinei massive rally price break through resistance on June 6 and highs near $ 1550, and further links to record highs and expected another record high on May 2, we tend to bargain buy. Resistance: 1569,1576 support: 1536,1518.
Huang Jintai 2011-6-23
Editing: South Street