Gold has responded to the November high, former trend line support (line that extends off of the June and October lows) and channel resistance. The market followed up on Tuesday’s outside day with a down day so respect the potential for additional weakness.
-The next major resistance is probably the October high at 1362.
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EUR/USD Technical Strategy: Awaiting follow-through to confirm technical bias
• Doji suggests some indecision, but more meaningful reversal signal remains absent • Clearance of 1.3700 needs additional confirmation to support continued advance
The Euro has extended its recent gains and is wavering around the critical 1.3700 level. While there appears to be some indecision amongst traders as signified by the Doji candle formation on the daily, it may be too soon to suggest a reversal. Indeed caution is suggested here when looking at selling EUR/USD, based on a false reversal signal provided by a Shooting Star formation last week.
A new premier in Italy , the third of the election
Euro not impressed
The single currency has kept a wary tone today's session , resisting U.S. dollar .. and much else . Italy has a new prime minister , resulting from political understanding and not exit polls and hopes link markets more than avoiding early elections - usually resulting in lengthy negotiations to form a government - but the joy of promised reforms to the labor market and public sector . Proof of the original loan is in response to sovereign debt markets , the interest rates on 10-year Italian securities have lowered the minimum of the last eight years . Greece, on the other hand, can not hope for an easing of loan terms up to the European elections in May. Euro zone inflation and minutes from the Fed's monetary policy meeting will bring more vitality the EUR / USD , which for the moment seems to be still inclined to continue the previous trend oriented upwards .
Gold Rises to 3-Month High on Haven Demand as Silver Extends Run (bloomberg article)
Gold advanced to the highest level in more than three months as speculation the U.S. economic recovery will slow spurred demand for a haven. Silver headed for the longest run of gains since at least 1968.
Bullion climbed 4.1 percent last week, the most since the period ended Aug. 16. U.S. factory production unexpectedly declined in January by the most since May 2009, according to a report released on Feb. 14. Gold will establish a new range above $1,300 an ounce and U.S. investors are becoming friendlier to the metal, UBS AG said in a report today.
Bullion tumbled the most since 1981 last year after some investors lost faith in the metal as a store of value and as U.S. policy makers signaled they will slow stimulus. Gold rebounded 9.9 percent this year as emerging-market equities and currencies weakened and lower prices of the metal spurred more physical demand, particularly from Asia.
“It is the insurance product against further emerging market turmoil, more bad U.S. data, potentially too frothy equity markets and unforeseen market shocks,” UBS analysts in London, who met with U.S. clients last week, wrote in the report. “With positioning so light and the sentiment turn in gold’s favor so recent, we expect that gold will remain bid.”
Bullion for immediate delivery rose 0.6 percent to $1,326.81 an ounce by 11:40 a.m. in London. It reached $1,330.03, the highest since Oct. 31. Gold for April delivery gained 0.6 percent to $1,327.10 in electronic trading on the Comex in New York, where futures trading volume was 15 percent above the average for the past 100 days for this time of day, data compiled by Bloomberg showed.
Markets in the U.S. will be closed for a holiday today.
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