While the currency markets are rather quite, big surprise is found in gold price, which smashed to as low as 1684, hitting the lowest level since March. Silver also tumbled to as an eight-month low of 22.5. The move was, for certain, exaggerated by the ultra thin Asian morning. Yet, the near term bearishness is there as markets are starting to take the expectations of Fed tapering seriously. Attention will turn to comments from Fed officials this week to get a better view on the hawk/dove split in the FOMC. Technically, 1676.56 support could provide a floor to Gold for now. But there is little prospect to reclaim 1800 handle. We'd likely see some sideway consolidations first. But a strong break of 1676.56 could be a sign of strong Dollar buying. If that happens, we'd turn our attention to EUR/USD, to see if it break through 1.1602/1703 support zone in tandem. In Asia, at the time of writing, Hong Kong HSI is up 0.94%. China Shanghai SSE is up 0.95%. Japan and Singapore are on holiday. |
