Recent rising oil prices have benefit gold, which is often bought as a hedge against oil-led inflation. The metal usually moves in the opposite direction to the U.S. currency, for which it is often bought as an alternative investment.
A report by the industry-funded World Gold Council (14 August 2008), global gold jewellery demand was down 24 percent in the second quarter as high and volatile prices curbed buying.
What we have seen after 3 weeks of sell down, most speculative long positions have been washed out. Open interest remains at a low level of 377,539 for Gold. It is common to see relief buying after such a slide in Gold prices from its all time high of 1030. Looking ahead in technical perspective, the oversold condition might spur further upside for Gold in the coming weeks.
The previous support at 840 were broken last week may be retested as a resistance and in our view, we still hold that it might retake that level and maintain at that level until further interest appears.
A report by the industry-funded World Gold Council (14 August 2008), global gold jewellery demand was down 24 percent in the second quarter as high and volatile prices curbed buying.
What we have seen after 3 weeks of sell down, most speculative long positions have been washed out. Open interest remains at a low level of 377,539 for Gold. It is common to see relief buying after such a slide in Gold prices from its all time high of 1030. Looking ahead in technical perspective, the oversold condition might spur further upside for Gold in the coming weeks.
The previous support at 840 were broken last week may be retested as a resistance and in our view, we still hold that it might retake that level and maintain at that level until further interest appears.
-- Bullion Traders
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
No comments:
Post a Comment