FEDERAL Reserve chairman Ben Bernanke gave his semi-annual report to the US Congress last week, giving assurance that policymakers would not look forward to tighten the monetary policy in foreseeable future. Market interpreted much of his comments as being dovish, which weakened the greenback further. Meanwhile, US unemployment claims dropped to 334,000 and pushed the Dow Jones markets to 14,550 tops again.
Gold prices consolidated between 1,270.00 and 1,300.00 resistances with slight bullish bias at the end of the week. This week, we reckon that resistance at 1,300.00 levels to be retested. Breaking above here and strong settlement could lift the trend to 1,340.00 levels. However, marginal break within a same day could be false alarm and throw the prices back at 1,270.00 regions. We reckon the imminent trend direction to be unfolded upon Wednesday after China PMI (Purchasing Managers’ Index) manufacturing data is released.
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