The metal rebounds of 1.5% at yesterday’s session started the week on a higher note. The muted equities shift the investors to Gold. The metal closed at 1238.00 gained of 121$ comes to more than 10% gains in a month. This was the best performing month in four years.
Bank of Montreal CEO: Gold prices stabilize exciting, gold output appears rationalization phenomenon.
Last night, the central bank has moved to further loosen monetary policy. The PBC has decided to provide targeted reserve requirement ratio (RRR) cuts for selected financial institutions as of June 28, 2015, in an effort to step up support for the development of the real economy and promote structural adjustment.
UBS said the Chinese market due to demand for hedging gold buying will bring increased. Currently, the housing market is a major competitor of gold, the recent housing prices in major Chinese cities rose. However, if the further weakening of the stock market, investors turn to gold ETF it will be very easy, which will exhibit Chinese gold investors change attitudes. So far this year, two Chinese gold ETF inflows have been a total of 174,580 ounces of gold.
SPDR gold holdings 14.87 tons the previous day’s surge, the highest in September 2014 to a new high.
Net long positions in gold futures market has increased for eight consecutive weeks, which is the longest since 2012, net long positions and thus hit its highest level since February last year.
“With fresh economic concerns flowing from China in the wake planned jobs cuts in steel and coal overnight the market has revived fears of economic turmoil inside China and that has given gold and silver a fresh boost,” The Hightower Report, said. “However, the gold market enters the new trading week with an extending pattern of lower highs and minor pressure from a firmer dollar.”
The metal is trading at $1,242.00 at Asia’s session earlier swing high seems at $1,243.00 and $1,253.00 levels. Earlier high was $1,263.50 and 200Wema seems at $1,260.00.
Earlier, in 2013 August and 2014 March twice the metal was rejected at 200Dema. In early February, the metal was rejected once again at 200 Wema . In case, if the price settles above $1,264.00 we can expect a sharp run in the coming weeks towards $1,310.00 and $1,345.00 levels.
In the monthly chart, 100sma seems at $1,262.00 levels.