Gold Above 1 900 As Further Upside Takes Hold

Gold’s surge to a new record high above 1900 signaled investors remained cautious in the global economic outlook.

Gold

Range: 1,897.00 – 1,901.10

Support: 1,858.00

Resistance: 1,925.00

The rally continues for Gold after the huge rise last week. Comments that the recent move has been over extended has failed to dampen the bulls enthusiasm with the metal tacking on another gain yesterday. Global growth concerns and some expectations of QE3 from Fed Chairman Bernanke have been fuelling the rise, but the likelihood of more QE at this juncture is considered small. Asian markets overnight have driven Gold up through 1,900.00 to a high of 1,913.50 before some profit taking pushed the metal back to 1,892.00 Resistance ahead now seen at 1,925.00, with support at 1,858.00.

EUR/USD

Range: 1.4355 – 1.4400

Support: 1.4350

Resistance: 1.4403

Euro-dollar closed in NY at 1.4368. Rate initially eased to 1.4354 to mark Asian lows, with demand in place at 1.4350/30, before edging higher, meeting resistance on approach to 1.4375. Early part of the session was described as subdued with rumours ahead of China PMI release suggested outcome would be weak, but release of stronger than forecast data provided a strong boost, taking euro-dollar to session highs of 1.43925. Rate settled back between 1.4360/75 during the Asian afternoon before recovering to the 1.4380/85 into Europe.

Demand now between 1.4350/30, with more at 1.4310/00. Resistance seen placed at 1.4393/03, more 1.4415/20 ahead at 1.4432/34, with stronger interest remaining at 1.4450/55.

GBP/USD

Range: 1.6460 – 1.6482

Support: 1.6455

Resistance 1.6490

Sterling closed in NY at 1.6465 the rate having recovered from NY session lows of 1.6435 to 1.6488 and was easing lower into the Asian session. Rate marked Asia lows at 1.6453, with in opening trade and was restricted to a tight 1.6453/75 range. A short lived rally came also on stronger China PMI data and took the rate up to retest that NY recovery high at 1.6488. Rate settled back into a 1.6470/85 range ahead of the European open.

Support is now seen at 1.6455/50, ahead of 1.6435/30, stronger into 1.6420. Resistance noted at 1.6490/00, more into 1.6520/25 and 1.6550/55.

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