September 11, 2007 – despite the dollar’s second straight week of gains, gold prices ended the week higher, closing near 1940 levels. But the range is only $60 and has been narrowing in recent weeks. This may imply that once the current correction range, gold prices may usher in a break. That has also created solid support for gold, given that rising inflationary pressures are weighing on negative real yields, and it has added to bullish sentiment among market bulls that gold could break its stranglehold after recent volatility and move higher.
At the same time, the recent market situation, but the political confrontation at least before the election in the United States are big probability will maintain the current situation, it is planted in the intricacies of the market has been a common thread, believe that will be the solid support gold prices downward, for long increased attack on admission to the high style.
Spot gold started the week at $1930.12 an ounce, trading as high as $196.20 and as low as $1906.24 before closing at $1939.42, up $6.12, or 0.32 percent.
Technically, bearish traders are likely to wait for a convincing break through support at the $1910-05 level, which could be followed by a pullback to August’s monthly volatility low near $1,863. A sustained rally above the 1970 level (50% Fibonacci level and downtrend line) would be seen as a new trigger for bullish traders.
“Gold has been very resilient in resisting a correction, rebounding from the support levels and 50-day moving averages that it has maintained since its fall in early August,” said Adrian Day, President and CEO of Adrian Day Asset Management.
Indian army’s mountain warfare unit has sounded its highest alert after talks between Chinese and Indian brigade commanders failed to produce results
With no breakthrough in the negotiations among brigade commanders, the parties have agreed to hold a meeting of the army commanders for future dialogue. So far, China and India have held five military-level meetings.
The two countries decided to hold a sixth round of high-level military talks in the coming days. Lieutenant General Harinder Singh, commander of India’s 14th Army, and Major-General Liu Lin, commander of the Southern Xinjiang Military Region, have not met since August 2.
A senior administration official said trust between the two militaries had completely collapsed. China has mobilized thousands of soldiers, tanks and howitzers, and the two sides are close to each other in the Bangong Lake-Chushur area.
Seeing the movement of PLA troops and artillery, the Indian army has also deployed similar weapons in The Pangkor Valley. Both countries’ “troops and guns are within range,” an administration official said.
In addition, China has deployed militia forces to “consolidate the border” and “stabilize Tibet,” sources said. Their mission was to try to dislodge Indian troops from the tactical high ground.
According to a recent report on the Website of India Today, the Indian army, with its expertise in high-altitude operations, has been deployed to forward positions in the so-called ladakh region. Citing sources, India Today said the Indian army had increased its troop and defence presence in the past few days, boosting its military presence on the south and north Banks of Lake Banguong.
An Indian official was quoted as saying the country was maintaining its “highest alert” status. Another official said, “One small trigger could cause the situation to get out of hand.”
Donald Trump has announced that the geopolitical risks of a peace deal between Israel and The Palestinians are unlikely to ease
U.S. President Donald Trump has announced that Bahrain has agreed to normalize relations with Israel, another diplomatic victory for President Trump following a similar deal with the United Arab Emirates last month. They agreed to “establish full diplomatic relations between Israel and the Kingdom of Bahrain,” according to a formal statement issued by the United States, Bahrain and Israel. Bahrain, Israel and the United Arab Emirates will attend a White House signing ceremony next Tuesday to sign a “historic declaration of peace,” the statement said.
A similar agreement was reached last month between the United Arab Emirates and Israel under U.S. mediation.
Bahrain also accepted Mr. Trump’s invitation to join Israel and the United Arab Emirates in a signing ceremony at the White House next Tuesday, where they will sign a “historic declaration of peace,” the statement said Friday.
A week ago, Mr. Trump oversaw the signing of an agreement between Serbia and Kosovo to normalize economic relations between the two countries.
The arrangement also includes Kosovo recognizing Israel and Serbia agreeing to move its embassy to Jerusalem — as the United States did to its embassy in 2017.
Brexit risks continue to mount Britain and Japan strike trade deal as fallback
While the risk of Britain leaving the European Union is mounting, news in London that the UK has struck a trade deal with Japan, its first major trade deal since leaving the EU, boosted market sentiment. The Financial Times commented that the deal could not come at a better time for British Prime Minister Boris Johnson, as negotiations between Britain and the European Union are at an impasse and the deadline for a deal is approaching. Meanwhile, trade talks with the United States were suspended, with the British government refusing to grant unrestricted access to American agricultural products.
This week, 15 Wall Street professionals took part in Kitco’s latest survey. Among participants, five professionals (36%) expect gold prices to rise; Three analysts (21%) expect gold prices to fall, while six (43%) are neutral on gold.
Meanwhile, retail investor confidence rose to its highest level in a month. A total of 1,359 people took part in the online survey. Of those surveyed, 926, or 68 per cent, expected gold prices to rise next week. Another 205 (15 per cent) said they expected gold prices to fall, while 228 (17 per cent) were neutral.
Many analysts said they were neutral on gold as the dollar regained momentum. The dollar index.DXY finished the week above a key psychological level around 93.
Mark Lebovits, publisher of VR Metals/Resource, said he was bearish on gold because of the dollar’s recent rebound.
While most market analysts are neutral on gold, there is strong bullish sentiment as gold prices remain supportive above $1,900.
Darin Newsom, President of Analysis, said he is bearish on gold because of the bearish technical outlook. “I think it’s the tension and uncertainty in the market that’s driving prices up,” he said.
He said he is ultimately bearish on gold because he expects the dollar to eventually push the price below $1,900. He added that he sees gold’s four-week low of $1,874 as a key support.
Charlie Nedoss, senior market strategist at LaSalle Futures Group in New York, said while gold looks technically expensive, he is optimistic the price will rebound next week.
“Last week, we tested support for our 50-day moving average, and now we’re challenging our 20-day moving average up,” he said. “I think the path of least resistance is up.”
Nedoss said he expects gold to close above $1,954 this week. The final rally remained unchanged as gold traded above $1,941, he added.