Thursday, February 11, 2010
Strengthening Gold Market Indicates EU/Greece Pact is Imminent.
The strengthening April Gold market is a strong indication that the pact between the European Union and Greece is imminent, thereby driving up demand for risky assets. Speculators are
anticipating that the agreement to shore up the debt in Greece will be released shortly. This news should pressure the Dollar and underpin the gold market.
March Crude Oil is trading sharply higher overnight after taking out a key retracement zone. Oversold conditions and the possibility of a weaker Dollar are helping to boost this
market. Traders are looking for increased demand for risky assets to continue today. In addition, signs of an improving economy may increase demand for energy.
Equity markets are trading higher overnight. Confidence is returning to the markets. Traders feel that an agreement between the EU and Greece will increase appetite for risk and are
buying in anticipation of the news. Tonight’s rally is being driven by Asia and Europe. The key to higher markets will be whether demand comes in from U.S. traders. …
