Gold rallied to its highest in the first month of January after Euro finance ministers agreed to a 130 billion euro rescue for Greece. This received more upward momentum when China recently cut its required reserve ratio and committed to help the euro bloc. Gold already received a strong boost after the U.S. Federal Reserve last month said it would keep rates near zero at least
until late 2014. However it faced strong resistance as liquidity tightens for European banks. This was later witnessed in a one day "rout" last week when it surrendered a two weeks gain. According to technicals, it nevertheless remains short term bearish.
until late 2014. However it faced strong resistance as liquidity tightens for European banks. This was later witnessed in a one day "rout" last week when it surrendered a two weeks gain. According to technicals, it nevertheless remains short term bearish.
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