Gold Report 21st March
Fed Reserve Chairman Ben Bernanke promised to continue with the stimulus programme and maintain near-zero rates stipulating low rates will prevail as long as the jobless rate remains above 6.5%. Gold would have benefitted from this statement if it wasn’t for rumours that the Bank of Japan new central governor may take a more aggressive policy stance when he speaks today. This caused the dollar/yen pair to appreciate somewhat.
Intra-day perspective looks bearish on this 15 min chart but as the 4 hour chart still shows bullishness with a recently printed hammer it is probable price will turn before today’s low of $1604.54 to form a higher low and subsequent reversal.
A test of Wednesday’s high at $1615.77 is likely to occur before the weeks out which could be surpassed if there are any deepening concerns with Europe’s suffering economy after manufacturing PMI’s from France and Germany at 16:00 and 16:30 respectively today.
On the downside for gold tonight the US existing home sales and Philly manufacturing index are scheduled so it may be prudent to reduce long exposure over these figures.
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