Attractiveness and gold luster wear off!

Jump in bond yields in Europe and the global slowdown issues have been regarded as diluting the appeal of gold. Therefore, new investors can buy in the level of U.S. $ 1,600 per troy ounce.


Researchers and analysts PT Monex Investindo Futures Wibisono said Daru, after ranging between U.S. $ 1600-1700 in early November, gold managed to penetrate U.S. $ 1,700 and ranging in the range U.S. $ 1700-1800. In the end, gold hit its highest level in November in the level of U.S. $ 1,802.60 on the 8th.

But, continued Daru, since the debt crisis in Europe worsened, gold does not hold in that range. "After that, gold is no longer experiencing the strengthening and decreased gradually until it reaches the level when the level of U.S. $ 1,693.44 with lows and highs of U.S. $ 1,688.45 U.S. $ 1,694.59 per troy ounce, or are still under U.S. $ 1,700," he told HERE. COM , in Jakarta, Thursday (24/11).

Daru further explained, the decline in gold prices triggered the outbreak of the surge in bond yields starting from Italy, Spain, Belgium, Portugal, France, to Germany. In fact, Italy is the third largest economy in the EU after Germany and France. "Previously, Europeans did not think Italy will be affected due to a focus on Greece," he said.

Italy is so affected, says Daru, with yield increases of up to 7.502% bonds with a tenor of 10 years, seen the market began to collapse. "So also with the yield on Spain which reached the highest price in 14 years. Italy, Spain, and Portugal through 7%, "said Daru.

On the other hand, the German bond yield was stable, but the situation deteriorated after the last auction of government bonds that do not reach 35% for the tenor of 10 years based on an independent newspaper. "That is, the debt crisis threatening the country with great economy," he added.

Daru added, the German bond auction on Wednesday (23/11), is the least successful auctions since the euro was launched. Therefore, the main assets of the euro zone has lost its appeal in the eyes of investors. "The market was disappointed due to the absence of new measures from the European Union to overcome the crisis," he said.

Condition, Daru added, exacerbated by the rating agencies Fitch Ratings, which states, did not rule out the euro zone crisis and the risk of economic slowdown threatens France's debt rating. "Since the crisis in Europe is a major crisis, could trigger a world recession," he said.

As a result, interest was reduced to all sorts of assets of investment products available in the world, including gold. "Moreover, the market is not only concerned with the debt crisis of Europe, but also worried about the outbreak of the global economic slowdown," said Daru.

He explained that the three giants of the world economy has shown growth slowing. China with Gross Domestic Product (GDP) third quarter of 2011 down to 9.1% from 9.5% the previous quarter which would lead to slowdown in economic hard landing . "The condition is exacerbated by China's manufacturing index fell to 48.0 from the previous 51 and this figure is the weakest in 32 years," he said.

So also with the EU's GDP is stagnant at 0.2% level. U.S. GDP also fell drastically so 2% from 2.5%. Moreover, the minutes of the Federal Open Market Committee (FOMC) The Fed also showed the central bank will evaluate the major banks in the U.S. through the stress test 31 banks with nine major banks. "In fact, last year only 17 banks. This is also due to contagion from the debt crisis in Europe, "said Daru.

At the same time, the U.S. Congress not reaching an agreement about budget savings plan worth U.S. $ 1.2 trillion. "Therefore, the movement of gold tends to consolidation. Therefore, the market is very difficult to believe in a particular investment product. Gold is still good, collectible but its appeal is currently being dull, "he added.

According to him, the gold nearest resistance at the level of U.S. $ 1,700 per troy ounce. Next, right at the level of Moving Average (MA) 30 at U.S. $ 1,720, 1760 to U.S. $ 1,800. Meanwhile, gold support at the level of U.S. $ 1,680, 1640, and 1600 which is the lowest level October 20, 2011.

Daru asserted, the gold to U.S. $ 1,600 per troy ounce. Therefore, in terms of indicators stochastic , gold has been confirmed down trend , because the line intersected the bearish after penetrating U.S. $ 1,700 per troy ounce. "The Moving Average (MA) was already appears to have declined," he said.

On top of that, Daru recommend buying gold at $ 1,600 per troy ounce. But, for those who already have a position to take action at the level of U.S. $ 1,720. Therefore, gold will move in the range of 1600-1800 until the end of the year. "Early in 2012, could have been the gold rally will return to follow the development of the European Union due to higher demand," he added.