Gold showing positive signs before Global announcements: Maya Iron Ores

Gold was the true winner last week moving up and down all week to close Friday up 10.00 % and up over 2% for the week as investors looked for safe-havens. The USD had been trading down all week and came back to life at the close of the markets Friday rebounding against the euro.

The main focus of last week and this coming week will be Greece, all week long rumors, statements and news kept insisting that a deal was imminent, that a deal had been reached, pushing the euro up all week. Finally by Friday with no deal in place, investors moved to the safety of Gold.

As the weekend ends, with no deal in place and the EU meeting tomorrow, the possibility of a Greek default become more and more likely or something from the ECB or the IMF, but no one can image what that would be.

The question is at this late date, even if a deal is made will it keep Greece from eventually defaulting.

Gold should continue to climb at least until an agreement is completed and made public. There is little hope for anything to support the euro.

There is a lot of news due out in the US this week. Last week existing home sales disappointed but jobs reports were positive. This coming week we have the Fed’s interest rate and FOMC statements on Tuesday.

At the moment gold continues to benefit from the ‘risk-on’ theme of recent trading sessions an should continue so in the early part of the week.

We expect Gold to be on the bearish side this week. On the upside we expect Gold to touch upto 1670 & downside around 1620 Levels.

(Complied by Mitesh Rasaikar, CEO (Marketing & Finance), Maya Iron Ores)