Gold weekly reviews 12 Dec 2009

Gold for December delivery fell $6.30, or 0.6%, to end at $1,119.40 an ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement since Nov. 13. The contract ended the week down 4.2%. Spot gold weekly open @1156.65 level,high at @1168.55, low at @1109.30 and close at @1114.95 level.

The more actively traded February contract also fell, down 0.6% at $1,119.90 an ounce.

The strong U.S. retail sales number and consumer confidence likely have short-term traders selling long positions,a commodities and macroeconomic research firm.

The U.S. dollar turned sharply higher after the retail-sales data, and extended gains after the sentiment report.The dollar index (DXY 76.57, +0.53, +0.69%) rose 0.8% at 76.636.

Gold will be more volatile next week as traders begin to position themselves for the Federal reserval meeting. Look at weekly chart may correction one more week comming. But gold needs to stabilize, holding to a $1,125-to-$1,130 level range for a few days, in order for funds and momentum traders to resume buying. The buyer will comming @1126 level up,and fighting with @1130 level to holding long psn.

The main key for gold correction fast is profit taking and bonus in year end and Christ Mas.

I don't supprise with gold bullish at the end of first quarter of 2010, with strong support @1150 from India's 200 tonnes buying last day. Technical support around @1170-90 regions. Another very strong support level from my neighbour- China central bank. They are interesting in increasing its gold reserves to 6000 tonnes in the next 3-5 years and up to 10,000 tonnes in next 8-10 years

I expect the current correction to turn out as nothing more than a short-term, it does not look like to the correction of the 2007 … just another buying opportunity.

Happy weekend.

Bangkinh-MDI