郭啟倫

Bullion market overview

2015-04-16

London gold closed at USD $1,203.2 and London silver closed at USD $16.34.

                   

Gold price tested the barrier of $1,195 area in early Asian and European hours respectivelyyesterday.  It fell from there and declined to $1,189 area before it stabilized.  It climbed above $1,204 area at the closing of U.S. session.  Gold closed at $1,203 area finally.




Oil price rallied whilst USD Index tumbled after the start of European hours. Both factors not only supported the gold price but provided strength to it also.




Since ECB President Draghi stated that there is evident that the current monetary policy is meeting its effectiveness, USD should be dragged down by such comments.  Gold price should be boosted.  Together with the uprising oil price, gold price should be able to rally.




However, the latest Fed’s Beige Book Report does not diminish the chance of a rate hike completely.  Rate hike worry should suppress the rising momentum.  Gold price may not be able to rally sharply in a short period of time.




If oil price rally after a slight retreat, it will be a critical factor for gold price to test the resistance of $1,220 level.




Gold should be moving between the ranges of $1,191 to $1,218 in short term.  It will test the barrier of $1,218 area whilst digesting the downward pressure from profit taking action.




Gold price projection:          Long at $1,191, take profit at $1,218, stop loss at $1,184




Silver price projection:         Long at $16.11, take profit at $16.88, stop loss at $16.00

(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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