A mostly negative week – gold moved from its high of USD$1215 on Monday, dropping down to $1185 Wednesday, finishing the week at USD$1208.
"The world demand for tangible assets and the safe haven appeal have been the underlying fundamental that is keeping gold around $1,200," said broker Mike Daly at PFGBest.
With the pivot price at $1,206, Daly put the next resistance level at $1,218, followed by more resistance at $1,226. He also placed initial support at $1,198 and additional support at $1,186.
Gold prices rebounded on Friday despite a strong dollar and continuing gains on Wall Street.
"Gold is still friendly on a pull back to $1,150 or $1,160, that’s still a good level to get in at," Robin Bhar, analyst at Credit Agricole said.
"For next week we expect more of the same, really," he added. "We’ve obviously had more confidence coming back into the market, some of the fears of last week, the liquidity crunch, have not really come to a head, instead passing uneventfully."
Bargain hunters from the physical market supported prices today, with news that Indian wholesale traders are restocking also supporting prices.
"Physical players clearly view $1,200 as a good level to buy gold," broker Standard Bank said.
The price recovery was seen despite a strong US dollar at 1.2616 versus the euro - historically, gold tends to follow the euro/dollar movements for direction, but this correlation has faded over the past few months as other drivers came into play
Data coming out this week means the NZDUSD should be relatively quiet until later in the week, where we may see a further increase in the NZD$.
DISCLAIMER: New Zealand Mint does not provide financial advice and does not employ financial advisors. Any opinions expressed within news articles are not intended as recommendations. If you are looking for investment advice, please seek independent, specific advice regarding your personal financial situation from a qualified professional.
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