Monday, March 19, 2012

Gold Rebounds in Early Trading

After falling more than $150 since late February, prices of Gold have started to stabilize and are up over 3.0% since last week’s lows.  Industry reports have stated that the fall in prices was met with buying by global central banks to take advantage of the lower price points.

More on the early morning trading from Reuters:
Gold added $9.35 to trade at $1,662.84 (1049.60 pounds) an ounce by 3:23 am British time, after posting a 3 percent fall last week in its second-biggest weekly decline this year, on fading expectations of more monetary easing in the United States.
Bullion raced to a record of around $1,920 last September on fears the euro debt crisis could stall global growth.
"You can see there's short-covering. I think it's technical. The upside will be at $1,675 to $1,680, and there will be some resistance there," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
"Gold wants to break test these levels, but if it can't, it will go back to $1,600 again. Let's see what happens to the market after the increase in India's duty."  Read More
Looking ahead, Gold traders will be awaiting further central bank activity this week, as bot the BoE and RBA issue their MPC Minutes data.

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