Gold Fundamental 24/11/11

Gold prices decline on the European trading session yesterday after a German bond auction
results are not as expected. Also the news that one of the largest banks in France and Belgium
who received special supervision to prevent default makes possible credit rating downgrade of
France is increasing. Previously China has also released data on manufacturing index indicating
contraction rate. The decline continued in the U.S. trading session where the unemployment
rate still showed a rise and investors are reluctant to take positions in assets such as stocks
and commodities ahead of the Thanksgiving holiday. Looking ahead to this weekend, gold
prices expected to remain depressed due to the negative sentiment of the European Union
still haunt the markets and the weakening of the Euro will further strengthen the U.S. dollar.
Technically, MACD indicators on daily charts should be wary because the histogram that have
penetrated below the zero point to which a sell signal. Penetration in a support 1686 believed
can make it goes down deeper. But wary if the price movement turned stronger and
penetrates the resistance level at 1699 then it could become an alternative scenario to buy
with a target of 1710 ‐ 1718.
Source: Robert Hardy