Gold rallied higher and traded above $1,540 in the week as investors continued to head to the safety of the yellow haven with the dollar trading near the lowest in three years and at its weakest versus the euro since 2009.
The Federal Reserve pledged to keep rates low last week and support the “moderate” recovery and called the spike in inflation “temporal” which still did not undermine the rally for the metal. Gold moved higher with the dollar sinking and inflation globally rising with surging commodity prices, as the US subdued inflation did not mean the end of the story.
Last week Australian inflation rallied and bolstered the case for RBA tightening and so did the Euro Area's inflation, where the flash CPI estimate for April showed inflation running higher at 2.8%.
The uncertainty remains and the odds are still towards more gains for the metal with the majority eyeing further gains for gold in the week to come.
This week we have key data to focus on with the RBA rate decision on Tuesday where the central bank is expected to warn of rising inflation as they keep rates steady at 4.75% unless they indeed surprise the market which is highly unlikely.
We have sector performance indices on the queue from across key nations and that will affect the overall outlook for growth.
We also have the ECB and BOE rate decisions on Thursday and though both central banks are expected to keep rates steady, of course the focus will be on Trichet and whether he reiterates his strong vigilance from rising inflation which will support gold.
The last key figure will be on Friday with the US jobs report. Weak or strong figures from the US both will keep the gold higher on haven demand and hedge against a weak dollar. A heavy volatile week awaits gold again especially with the metal trading in heavy overbought areas, but in general the odds are strong still for more gains. Originally posted here...
Gold Technical Analysis For The Week Of May 2, 2011 Bytag ; Gold Price Forecat May 2011, Gold prices estimated 2011, RBA rate, rising inflation, outlook for growth For the latest updates PRESS CTR + D or visit Stock Market news Today
CommoditiesMansion.com ;
Gold continues to shoot absolutely straight up as traders are trying to find something that holds value since the US dollar isn’t. The truth is that it appears gold has a long way to go before it finds a top, but a pullback is to be expected with this kind of angle on the charts. Due to recent action, we see the $1,500 mark as a major support area now, and would love to buy gold back down towards those levels. If you are not involved in this trade, you simply must allow it to come back to lower prices before getting involved.
No comments:
Post a Comment