Continued poor performance of commodities in the second week of the year despite rising stock markets and the devaluation of the dollar. Which grant support gold after nervous trading during the first week of the year.
The investors usually have at this time of the year in a positive mood, but this feeling has not witnessed only shares. He returned recovery witnessed the U.S. dollar during the first week of the current year to fade quickly with returned value of the euro to the top of their range the current against the dollar; However, this has failed so far to give goods installment necessary; Despite this, the Chinese economic data have helped to support prices, because exports have jumped 14% in December, confirming the possibility of a recovery in the global economy.
The weekly report of the Bank ‘Saxo’: precious metals continued its recovery provisional central weakness of the dollar as a result of news that China’s appetite for gold remains strong.
At the same time, oil prices remain stuck between support operations derived from the improving economic data and market experiencing an oversupply has led to a reduction in Saudi Arabia produced in December to reach the lowest level in 19 months. In addition, decreased U.S. imports of oil to the lowest level reached in 25 years due to increased domestic production.
He sucked part of the excitement caused by the Chinese trade data bit recently when he jumped Chinese inflation data for the month of December than expected. A high inflation that limits the ability of government to do more in the process of stimulating growth. This is likely to reduce the country’s request – which constitutes a large proportion of the growth in demand for many commodities, including soybeans, oil and copper – for raw materials.
Gold receives support
Hansen said the first, head of commodity strategy at Saxo Bank: after nervous trading during the first week of this year, which saw gold trade down to reach the levels that it was in late August of last year, spent the yellow metal of the second week in a bid to recover.
Eventually break rate movement two hundred days of 1662 dollars per ounce, which was keep it for a few days; however, there is no momentum to continue referring to the need for more operations to continue the gold price move within the specified style and commercial levels before launching in an attempt raise the price to a point critical resistance of $ 1710 U.S. dollars per ounce.
Compared with the euro gold still lead very weak performance and before we see an increase in the upward direction at this juncture, more height seems elusive. Gold is still on his way to his first positive week after the longest week of his losing streak since 2004.
He continued: As the effects of the negative report of the Federal Open Market Committee for gold in the month of December had begun to fade, gold has received some support.
This came more specifically from the weakness of the U.S. dollar, but also news from physical buying increasingly from China and India, the two largest buyers of gold in the world. Is expected to rise in Chinese demand before the Lunar New Year on February 10, while the Indian demand actually with store merchants for gold in anticipation of an expected rise in taxes on gold imports, as it is expected to rise taxes on gold imports in order to help reduce the country’s trade deficit .
He added: Technically, the levels that we pay attention to are primarily whether gold will succeed in continuing to move within the specified style and commercial levels above the rate of movement of two hundred days of 1662 dollars per ounce. After this, will move attention and focus on the high resistance of $ 2 January 1694.8 dollars per ounce before level importantly of 1710.7 dollars per ounce, which is a combination of the trend line of the high price for the month of October with a price movement unlike the previous trend of 50%. And we can find critical support at 1625 dollars per ounce.
Brent crude fell after three months of rise this week after the focus shifted from investor demand which is driven by a rise in equity markets and a favorable environment for investment to news that Saudi Arabia has cut its production in December, while imports declined the United States to the lowest level reached in 25 years . Resulted in lower Saudi production at a higher level of reserves that can be used in the event of a break in supplies in the future while the lower U.S. imports of oil means that more oil available in the global system of those countries, especially emerging economies, where demand is growing constantly.
The report said Saxo Bank: Keep money managers on many purchases of securities on January 1, has not been exceeded only in March of last year, when caused concerns about the impact of sanctions Iranian high trade Brent crude oil to above $ 123 a barrel.