Tuesday, February 28, 2012

Gold Trying Revive Back

Gold prices rose in the London session, the first increase in three days time. The sentiment is quite positive for the precious metal ahead of the European Central Bank injecting liquidity to be held February 29. Bloomberg surveys show ECB will provide low-cost loans as much as € 470 billion to the European banking sector liquidity in the auction of three years.

"As long as central banks loosen monetary policy and injecting excess liquidity into the market price of gold will continue to rise. However, $ 1800 will be a key resistance for today," said Li Ning, an analyst interviewed by Reuters. Li said gold could experience short-term correction if it again failed to penetrate the $ 1800 level, but $ 1750 will be a strong support. Meanwhile, Reuters technical analyst, Wang Tao, believe gold prices could reach $ 1797


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