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Demand for Higher Risk Commodities Drives Gold Higher

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Feb 2, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    April Gold surged for the third consecutive day fueled by a combination of oversold conditions and a weaker Dollar. After failing to attract fresh selling pressure following the break under the December bottom at $1076.50, this market has formed a support base. Tuesday’s rally helped form a new main bottom at $1073.20. Based on the short-term range of $1166.70 to $1074.40, traders should look for a retracement to $1120.50 to $1131.40. Watch for a technical bounce following a test of this zone.

    U.S. equity markets failed to attract selling pressure early in the session, triggering a buying spree. Increased demand for higher risk assets helped lead the charge along with good earnings reports and a better than expected U.S. Pending Home Sales Report. .

    The March E-mini S&P 500 held an early test of a 50% price at 1084.50. The failure to break this market when it tested 1082.00 led to an initial short-covering rally which encouraged fresh buying throughout the day session. The charts indicate a rally to 1109.25 is likely over the near-term.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
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