Many Factors Work Together, The Price Of Gold Is Flowing.

2011/9/26 17:31:00 33

Multiple Factors Jointly Affect The Price Of Gold

September 2011 23 Friday, international spot gold (1618.20, -21.60, -1.32%) (Lun Dunjin) opened 1736, the highest 1754.80, the lowest 1628.40, closing 1655.80, -4.58%.

The daily figure draws a large candle with the upper and lower leads, creating the largest single day and the largest decrease in a single week.

On the basic side, September 29th became a salvation.

Greece

The critical moment.

At that time, the German parliament will vote on whether to allow the European financial stability fund (EFSF) to buy sovereign bonds in the two tier market and expand its size from the current 250 billion euro to 440 billion euros.

The finance ministers and central bank governors meeting of the group of twenty (G20) issued a joint statement in Washington on the 22 th local time. They said they would work to take international coordinated actions to deal with the challenges facing the global economy, ensure the stability of the banking system and financial markets and deal with the threat of the European debt crisis.

The Chicago Mercantile Exchange once again raised the margin requirement for gold futures. It was leveraged and worried about the risk of its competitors. In addition, the US dollar was strong, and gold was sell-off and fell sharply.

The situation is similar to that after the Lehman bankruptcy in 2008 when gold prices rapidly increased.

Fall back

In a month's time, it dropped by more than 20%.

The world's largest gold trading fund SPDR Gold Trust, as of September 23rd, held 1252.21 tons of gold, unchanged from the previous trading day.

On the technical side, the price of gold has been falling behind the rising channel since October 08. Due to the strong sentiment of the market, gold prices will further test the BOLL track and the 40 week moving average in the weekly chart. We believe that the possibility of gaining support above the 1535 week average of the 40 week average is larger. At present, the gold price still has some adjustment space. If we can effectively break the 40 week EMA, we can consider buying a long line of buying from the 60 week average line to the BOLL 1348 US dollars.

In terms of operational strategy, gold has been reversed in recent years.

Short

Mainly, there is a significant rebound resistance near the $1700. If the rally is over, we can consider the short and medium term short sale, stop the loss of US $1710, and make a profit of US $1630.