Intraday Market Thoughts

Archived IMT (2010.08.31)

by Ashraf Laidi
Aug 31, 2010 18:38

AS GOLD HITS 8-WEEK HIGHS vs. all major currencies (except the yen) despite the euros broadening gains, the case for the yellow metal remains bolstered by what seems to be the inevitable path for QE2 from the Federal Reserve and the Bank of England. I made the case for $1270 in previous analysis and last weeks video analysis on gold, and I reiterate it today. GOLD vs. EUR hits EUR 984/oz, breaking well above the EUR960 resistance. Next ceiling stands at EUR 985/oz, which is the 61.8% retracement of the decline from the EUR 1044 high to the EUR 887.20 low. Gold has also broken above its June trend line resistance against both USD and EUR, which also supports the case for retesting the $1264 and EUR1031 record highs. GOLD/SILVER RATIO drops $3.00 from its $68 high, now testing 12-month trendline support as SILVER nears the $19.71 resistance. Recal, silver has yet to break its record high attained back in March 2008. Both metals should be considered for medium to long term investments.


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