Brazil reais by 6.5%

Last week we suggested interval operation gold was, more or less when the market and represents a significant departure from the plots. Market price adjustments even more strongly than expected, particularly gold break $ 1680 star wars the old republic power leveling, minimum hit $ 1665, thereafter rally but limited maximum hit $ 1710. Gold prices seem to have in the formation of a new intervalLow, investors even more puzzling is risk aversion factor once again lost. This week, letting the market the European debt crisis continues to tremble, is affecting France and Germany this last bastion of two euro. First France, and Belgium to reach provisional agreement to guarantee de g summer bank bonds, further worries France will lose the 3 a's credit rating while Germany auction of 10-yearBond burst out unpopular, planned auction of 6 billion euros, it is only sold 3.6 billion. After a failed auction, Germany Government bond yields rose to 2.09%, for a three-week highs, with Germany rise in bond yields, in almost all countries of the eurozone debt problems have emerged more or less, the euro exchange rate broken 1.34 fell sharply, dollar index, which skyrocketedNear rose to 79, which dragged prices lower. In addition, because of fears that the global economy could slide into a recession, commodity markets suffered tumbled the past week. Less than a weeks time fall in copper prices 4%, cotton down 8.83%. To a certain extent, this may increase the downward pressure on gold prices. Economic data this week United States GDP appear lower in the third quarter from 2.Fix 5% so 2%. Consumption of durable goods orders monthly rate-0.7%, together with United States jobless numbers soared last week, the University of Michigan confidence index lower than estimated, makes the market to the United States expected more pessimistic prospects for future economic growth. More the market is worried about China published the manufacturing purchasing managers ' index for 48, less than 50 reflects China's manufacturing industryIn a State of contraction. ����China declines to a certain extent increase downward pressure on gold prices. Flow of funds from the market, China in October Foreign Exchange accounts for the first drop in four years, European debt crisis accelerated outflow of hot money, European debt crisis "butterfly effect" hot money is thrown back in Europe and America, this is the most direct cause. Under the background of RMB appreciation is expected to weaken the ExchangeReduce feeding into trends trend. Detailed research on the emerging market exchange rates is not difficult to see, since November, Brazil reais by 6.5%, India rupee fell 5.64% Russia ruble by 1.92%. Outflow of funds from the emerging market trend significantly, liquidity in the market decline is bad for any risk assets. Gold short term pressures will increase.Short, gold prices could continue to maintain the 1660-1720 interval fluctuations, due to the European debt crisis is spreading to the core countries of Europe, United States, China and other economies show signs of slowing, lead to increasing risk aversion in the market, the dollar surge likely by mid-December the main direction of the market, gold prices upward in the future of the space will not be too great, From a technical analysis chart perspective, possibility of future gold prices even lower. On the operation, it is recommended that long-term physical gold investors in gold prices rebounded to 1720-1740 interval appropriately lower positions in the hands of, short-term investors the old republic power leveling, can be taken at the 1660-1720 interval of high parabolic bargain tactics.