A newspaper in China reported that an official from the China Gold Association said the county is unlikely to buy gold from IMF. 'It's not feasible for China buy the IMF bullion, as any purchase or even intent to do so would trigger market speculation and volatility'. Rather, the official stated China will increase gold reserves by acquiring gold mines abroad.
The news is disappointing as the market had hoped some central banks or official sectors will absorb IMF's remaining gold sales of 191.3 metric tons. Gold price plunges with the benchmark contract breaking below near term support at 1100. Currently trading at 1090.5, the yellow metal has fallen for a 3th consecutive day.
Gold's sharp fall and break of 1099.1 support today indicates that choppy recovery from 1044.5 has completed at 1131.5 after failing to sustain above 1126.4 resistance. The development also suggests that whole correction from 1227.5 is still in progress. Intraday bias is flipped back to the downside for retesting 1044.5 low first. On the upside, note that another rise above 1131.5 resistance now should confirm that fall from 1227.5 has completed with three waves down to 1044.5 and should bring retest of this high.
In the bigger picture, outlook remains broadly unchanged. Price actions from 1227.5 are treated as corrections to rise from 931.3 only. Hence, even in case of another fall, downside is expected to be contained by 100% projection of 1227.2 to 1075.2 from 1163 at 1010.7, which is close to 1000 psychological level and bring long term up trend resumption. Decisive break of 1163 resistance will indicate that such correction has already completed and the long term up trend is set to resume for another high above 1227.5.....Comex Gold Continuous Contract 4 Hours Chart.
Secrets of the 52 Week High Rule
Share
No comments:
Post a Comment