郭啟倫

Bullion market overview

2015-02-04

London gold closed at USD $1,263.4 and London silver closed at USD $17.36.

Gold price was moving downward after an early rise yesterday. It moved up after finding a support at $1,271 area in early Asian hours. It stalled at $1,285 level and began to tumble there. Gold price plunged to as low as $1,255 area and rebounded in mid U.S. session. It moved back up to $1,268 level once. Gold closed at $1,263 area finally.

Although EURO vs. USD rallied sharply after the U.S. session began whilst oil price climbed significantly, gold price was not benefited. It was due to the postponed rate hike from the Fed may happen; which limited the gold buying urge as a hedge to rate hike risk.

Gold price was dragged down after the start of European session. Moreover, European and U.S. stock markets rallied and attracted funds from gold market. The rising momentum of gold price was suppressed.

Gold price will move in a volatile trend in short term because of the expectation of reaching rate hike threshold against the U.S. economic prospect is going to influence the buying sentiment for gold. If investors choose to move capital from gold market to European and U.S. stock markets continuously, gold price may need to find a support at $1,250 level first before it climbs back up again. Gold should be moving between the ranges of $1,250 to $1,276 in short term. It will test the supporting strength of $1,250 level whilst waiting for the uprising risk taking sentiment to lift gold price.

Gold price projection: Long at $1,250, take profit at $1,276, stop loss at $1,243

Silver price projection: Long at $17.07, take profit at $17.69, stop loss at $16.95

(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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