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Gold Technical and Fundamental Analysis for the Week of June 13, 2011 markets
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The gold market continued its choppy behavior this previous week, but is quickly approaching a major trend line. The market looks bullish, but
consolidative at the same time. It isn’t rare for the markets to take a breath after a long run up, and this chart looks like that at the moment. As
long as we are above that trend line – we are buyers of the market on dips.

Gold Fundamental Analysis for the Week of June 13, 2011

We saw gold continue with heavy volatility last week and likely to the course for this one as the overall sentiment in the market turns fragile and
pessimistic with heavy losses across the board and rapid gains for the dollar.

Last week, Bernanke confirmed that the recovery in the United States remains “frustratingly slow” and pledged to keep the stimulus to support the
recovery, yet disappointed markets with the lack of strong signals for a possible third round of quantitative easing.

This was the start of the dollar comeback and gold pressures, yet the metal held its strength awaiting the central banks’ decisions with support
from inflation hedge amid rising inflation and steady monetary policies. The RBA, RBNZ, BoE and ECB all kept interest rates steady and Trichet did
follow market expectations and signaled a rate hike for July.

The metal was then boosted with the outlook for inflation and the rally seen in commodities, especially cord and oil as the former rose on
expectations for tight supplies and oil on OPEC’s decision to keep rates steady.

Nevertheless, as the week came to an end, fears over the outlook for recovery and the downside pressures from rising inflation on growth sent the
market in a strong selloff and pressured gold on the rising dollar, especially as losses extended across commodities and equities with the DJIA
breaking 12,000 areas.

Gold was pressured by the dollar and the liquidation to cover the losses and that bearish sentiment ended the week and likely to market this
starting week.

Gold this week will continue to fluctuate heavily with the uncertainty over the outlook and the debt crisis, with the dollar regaining some of its
losses and commodities falling on weakening demand outlook, which will pressure gold lower.

Nevertheless, the downside pressure on gold is to be tempered with haven demand from the debt crisis and hedge against uncertainty and accordingly
the losses are expected to remain contained and preserve the general upside bias for the metal which we expect will return strongly in the coming
period.