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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (13363)	6/19/2015 12:27:43 PM
From: Goose94	Read Replies (1) \| Respond to of 202448

Gold prices rallied this week and are holding above the $1,200 per ounce level for now. Don't look now, but there may be a floor building in the gold market. Gold traders digested fresh news from the Federal Reserve this week, while continuing to monitor developments in Greece. Also, a heavy sell-off in the Chinese stock market is worth keeping an eye on as well. The Fed: This week ushered in renewed expectations that the Federal Reserve will hike interest rates this year. In the wake of the Federal Open Market Committee (FOMC) policy making meeting, economists remain convinced the central bank is on track for a September lift-off from the current zero-bound monetary policy rates. Greece: Concerns that Greek banks may not have the funds to open on Monday morning is also supporting the gold market into the weekend. Moody's Analytics noted that "€2 billion in deposits have been withdrawn from Greek banks this week. Also, the odds are rising that Greece will be forced to impose capital controls, possibly as early as this weekend," in a research note to clients. In a research note entitled" The end is (really) near," Capital Economics analysts wrote: "The failure to reach a deal at last week’s Eurogroup meeting and the rapid outflow of deposits from Greek banks suggest that a near-term euro-zone exit may now be more likely than not. We do not buy the view that Greece would slip out of the euro-zone without a ripple. Should it become clear that a major default and exit are indeed coming soon, we will pull down our projections for growth across the rest of the euro-zone this year and next, possibly to predict a renewed recession." Safe haven buying: Chinese stocks got slammed this week, as the Shanghai Composite index shed 13.3% of its value. In recent week's reports of new retail trading accounts, many of them utilizing margin buying have ignited concerns about a possible bubble in the market there. Has the bubble popped? Chinese retail investors could turn to gold if the The chart: From a technical chart perspective, the weekly continuation chart for Comex gold futures shows a building series of "higher weekly lows." See Figure 1 below for points A, B and C. The higher weekly lows reveal that a technical floor is building in the gold market. Buyers are supporting gold on dips and the price retreats have been more limited on each occasion. From a big picture, long-term perspective, central banks remain active buyers of physical gold and economists expect that trend to continue. Chinese and Indian consumers are the world's largest individual buyers of gold and again that trend is expected to continue to grow in the future. There are many reasons that long-term investors buy gold. Long-term investors are saying there is "value" in gold under the $1,200 per ounce level, as seen by the building pattern of higher weekly price lows. Are you looking to buy? What level do you see value? Study the charts, consider the fundamentals. Plan your trade and trade your plan. By Kira Brecht