Market Leader informed
Partially worried about China’s intention to raise the interest rates, the market of gold saw a slight decline on Friday.
However, by the end of the trading day it was very likely that China was not going to change the rates, making the market react with an instant increase.
On Monday it became clear that China had postponed the interest rate increase. The upward tendency continued. Last Friday after the rapid decline some Indian traders started actively buying gold. Judging by the filigree rebound from the support level at 1372,5 on Friday, one may suppose that these were the same buyers.
Besides, the info coincides with the comments given by analysts of precious-metal market in Hong Kong, who mention a strong seasonal growth of the demand for gold shown by China and India. According to Comex, the gold reserves are equal to 11,570 million ounces. It should also be noted that the amount of partial long positions opened by various traders has increased by 9702 contracts. Of course, it is not a mere sign of some strong bullish perspective, but nevertheless, it indicates investors’ long-term preferences.
Silver practically follows the scenario of gold. The reasons are probably the same fundamental factors. Friday’s analytic forecasts for the market of platinum promised price growth because of the car sales increase in Russia and China. On Monday the market saw a major increase. Moreover, like other precious metals, platinum reacted to the data on China’s interest rate. According to Comex, the amount of net long positions for platinum increased by 2462 contracts, which testifies to bullish sentiments.
Provided by the Department of Market Sentiment Analysis of Masterforex-V Academy
Source: Market Leader news
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