郭啟倫

Bullion market overview

2015-02-05

London gold closed at USD $1,265.5 and London silver closed at USD $17.41.

Gold price was moving upward after it found a support at $1,257 area in early Asian hours yesterday. It climbed to as high as $1,272 area before the mid U.S. hours and turned weak from there. It declined to $1,259 area and found a support. Gold closed at $1,265 area finally.

Gold price failed to break the resistance of $1,272 level because USD Index rallied whilst oil price fell. Moreover, investors were not confirmed that Greece can reach debt switching agreement with ECB and other Euro zone members.

Gold buying interest was dragged down and suppressed the gold price. Since PBOC cut general bank reserve ratio first time in three years, such liquidity advantage should boost risk taking sentiment. If oil price can move back up to $50 per barrel in short term, gold price may be able to find a firmer support at $1,260 area.

Gold should be moving between the ranges of $1,257 to $1,283 in short term. It will test the barrier of $1,283 area whilst digesting the selling pressure from short term profit taking.

Gold price projection: Long at $1,257, take profit at $1,283, stop loss at $1,250

Silver price projection: Long at $17.10, take profit at $17.76, stop loss at $16.98 .

(The above displayed are just writers’ own opinions and for readers’ reference only. Financial markets are volatile and please be careful of the risks.)NOTICE

Investment involves risk. It is as likely that losses will be incurred rather than profits made as a result of buying and selling investment and financial products. Before investment, you should be aware of all the risks involved and carefully consider your investment objectives, trading experience, and level of risk acceptance. If you have any question, please seek advice from an independent professional advisor.

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