Intraday Market Thoughts

Archived IMT (2009.01.30)

by Ashraf Laidi
Jan 30, 2009 11:43

Gold achieved the technically relevant feat of closing above $920/oz, which is the trend line resistance extending from the March record of $1,031 through the $987 high in July. Any tensions escalating on the US-China currency front would be a welcome development for the already rallying precious metal, as currency devaluation (or attempts at doing so by the US) would be significantly capitalized upon by currency traders. LAST FRIDAY I WARNED on how gold could be further driven by retail investors learning about these developments and further pushing up the precious metal via exchange traded funds as well as by Japanese investors realizing that gold remains relatively understated in JPY terms.


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