Evening Gold Commentary-Jun 28th, 2013
1: Market
Review
2:
Fundamental
1 The Obama administration is
assembling a shortlist of candidates to lead the Fed, in the expectation that
Bernanke won’t seek reappointment.—WSJ
2 Japan’s core CPI was flat in May
compared with a year earlier, a sign of progress against deflationary pressures.—WSJ
3 The Boston Marathon bomb suspect was
charged. The charges include using a weapon of mass destruction to kill three
people at the April 15 race, where more than 260 injured, and killing a college
police officer.—WSJ
4 The Senate voted 68-32 to pass a sweeping
immigration-law overhaul. The bill now goes to the House, where conservatives
threaten to slow the drive to grant legal status to people in the U.S.
illegally.—WSJ
5 Mandela’s life Appeared to hang in
the balance as family members visited the South African hospital where he was
undergoing treatment.—WSJ
6 President Barack Obama
said he won’t engage in “wheeling and dealing” or jeopardize cooperation on a
broad range of issues with China or Russia in the
U.S. pursuit of leaker Edward Snowden.-- Margaret Talev & Julianna Goldman(Bloomberg)
7 Canada’s gross domestic product grew for a fourth straight month in
April(0.1% by GDP) as services expanded while goods output declined, government
figures showed.-- Greg Quinn(Bloomberg)
3:
Technical Analysis
Today, the
August Gold Future contract trading at COMEX rocketed after 10:00AM, and kept
increasing after that by about $45 at closing. By 5:15PM Eastern Time, it
closed at $1387.7, increased by 2.90%. Because of the big dive in the previous
9 trading days, the Mas formed a clearly bearish position. The candlestick has
a medium green body and long lower shadow without upper shadow. The volume
increased around 20% compared with yesterday.
First
support level: $1180 Strong
support level: $1160
First
resistance level: $1235 Strong
resistance level: $1280
MACD: DIFF
and MACD are both negative and moving downward, which is a bearish signal.
KDJ: K and D
value are 13.273 and 12.163 respectively, which means the selling power is two
aggressive and implies investor to consider buying.
Bollinger
Bands: The price is strongly supported by the lower BB and kept about lower BB
at closing, although the price broke the lower BB for several days, which is an
extreme situation. The bands are expanding and indicating an increase in price.
4: Opinions
and Expectations
1 Barrick Gold
Corp. (ABX) (ABX) and Kinross Gold
Corp. (K) are trading as if they’ve lost their investment-grade
ratings after the price of the metal plunged 28 percent this year to the lowest
since August 2010.-- Liezel Hill & Cecile Gutscher(Bloomberg)
2 Gold traders are divided on the
outlook for prices, with some judging that the slump to a 34-month low
following the Federal Reserve’s comments on tapering stimulus will spur
demand for coins and jewelry.-- Nicholas Larkin(Bloomberg)
3 The spot price of gold rebounded
from a 34-month low, jumping the most in a month, on signs of increased demand
for jewelry, coins and bars after the metal headed for the biggest quarterly
drop in at least 93 years.-- Debarati Roy(Bloomberg)
4 South Africa’s gold producers and
labor unions that want wage increase of more than double current levels will
start annual wage negotiations on July 11, according to the body representing
the companies.-- Paul Burkhardt(Bloomberg)
5 BlackRock
Inc. (BLK)’s Evy Hambro, who manages the $10 billion World Mining Fund,
said some gold miners may be forced out of business after the price of the
precious metal slumped and as they battle rising costs.-- Thomas Biesheuvel(Bloomberg)
6 When gold prices
tumbled in the spring, the world's biggest buyers took advantage of the lower
prices to snap up coins, bars and jewelry. In the current selloff, consumers in
China and India are holding back.-- CLEMENTINE WALLOP And BIMAN MUKHERJI(WSJ)
5: Tomorrow’s
Focus
National
Association of Realtors will release the data of Existing Home Sales. (July 1st)
6:
Important Charts
COMEX GOLD August
Key
Economic Data
