Gold Watch

Bangkok Post - - BUSINESS / DERIVATIVES & COMMODITIES -

Gold traded last week in a nar­row range of $12.39 an ounce and recorded its fifth straight weekly de­cline as the US dol­lar surged. In­vestors sought safety in the green­back as the Turk­ish lira plunged 16%, the Rus­sian rou­ble hit a two-year low and the euro and pound touched their weak­est in a year. Though US-China trade ten­sions are still ris­ing, the yuan has sta­bilised and Chi­nese eco­nomic data show lim­ited im­pact so far. Gold has lost 11% since April, and hold­ings by ex­change-traded funds have fallen by 6.3% since late May. The af­ter­noon fixing on Fri­day in Lon­don was $1,214.40, com­pared with $1,216.30 a week ear­lier.

Al­though gold has been range­bound, buy­ing in­ter­est in an­tic­i­pa­tion of later profit-tak­ing was seen as the price weak­ened. Short­term spec­u­la­tion on swings re­mains the strat­egy. Con­sider buy­ing at the sup­ports at $1,200 and $1,193 and sell some of your hold­ings at the first re­sis­tance at $1,228 an ounce. If that level can be bro­ken, hold off on sell­ing un­til the next re­sis­tance. In any case, set profit and stop-loss points in case prices do not move as ex­pected. Pre­pared by YLG Bul­lion In­ter­na­tional Co Ltd.

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