Daily Report 270415 2015-04-27
Gold

Main contract of domestic gold AU 1506 increasingly dropped in the night session. In terms of operations, short positions opened at RMB 239 when the market is weak could be held. Technical rebound is likely to take place during the intraday trading, with defensive moves prepared along the 5-day moving average. The bolster effect is found at RMB 235. The US durable goods orders in March increased by 4.0%, which is much higher than expectation. However, apart from the increase of transportation durable goods orders and planes, the non national defense capital durable goods orders are considerably lower than expected. Given the economic data recently is mixed; investment banks are decreasing the expected GDP in Q1. The US dollar index dropped and so did the gold. On the whole, the key element, which will affect the gold and silver, will still be the Fed monetary policy and the economic data. The overnight gold ETF continued increase in the past one week. Meanwhile, data released from CFTC shows that the gold non-commercial net position index rose by 2% to 39% from April 14 to April 21. The commercial net position index, however, dropped from 70% to 69% during the same time period, indicating the market is holding an optimistic view of the gold. However, the gold may not rally easily considering comprehensive elements.


Silver

Main contract of domestic silver AG 1506 dropped following the trend of gold in the night session. In terms of operations, short positions opened at RMB 3470 when the market is weak could be held. Technical rebound is likely to take place during the intraday trading process with defensive moves prepared along the 5-day moving average. The bolster effect was found at RMB 3400. Meanwhile, data released from CFTC shows that the gold non-commercial net position index rose by 19% to 45% from April 14 to April 21. The commercial net position index, however, dropped from 37% to 53% during the same time period. The sell side power has been strengthened in the past one week, which may result in the further dropping of the silver.
                                                                                Dong LV (Investment Certificate NO. TZ008452)