Analysis of gold prices today – July 23, 2012

Gold price technical analysis 17 - June, 2013

Gold fell on Monday under the pressure of a strong dollar, which increased concerns about the debt crisis in the euro zone after Spain sparked fears that she may need to save the sovereign plan. Fears that the two most important Spanish Mdiontin searching for financial assistance from the central government, which led the euro to its lowest level in two years against the U.S. dollar, which gave the U.S. power and make gold and other commodities priced in U.S. dollars less attractive in the United States.

Spain is the fifth strongest economy in the euro area, investors are afraid of having to follow the footsteps of Greece, Portugal and Ireland, who were put aside by international creditors after reaching borrowing costs have to be above the levels that can afford it. Says, “Dominique Schneider,” analyst at UBS Wealth Management in Singapore, “the problems of the euro zone will appear on the surface and keep the euro and the dollar weak point of the strong.”

The U.S. dollar rose more than 4% against a basket of major currencies so far this year, creating pressure on gold, which rose by only about 1% during the same period. Lack of commitment to further fiscal stimulus by the Fed in the United States to make gold confined to a narrow range increases, as investors awaited clarification of the policy following a meeting of the Federal Bank at the end of this month. “It is certain that there is scope for significant directional movement. Since we do not expect to achieve quantitative easing, there is a risk that prices may fall.”

Gold prices dropped by 0.3% to $ 1,579.29 an ounce at 11:46 pm Eastern Time, after he had achieved Mkhasr by 0.3% during the last week. And gold futures contracts in the United States of America for the month of August has lost 0.2% to $ 1,579.10.

Technical analyzes indicate that the gold will be neutral in a range between $ 1,567.34 and $ 1.597 an ounce, according to Reuters market analyst, “Wang Tao”.

Credit SPDR holdings of gold, which is the largest gold fund is traded in the world, fell for the second straight session to its lowest level in 6 months at 1,254.64 metric tons (1383 tons) on July 20.

Raise speculators net positions long in gold futures contracts in the United States and the options to 92,964 held in the week ending on July 17, but the net length was still close to the lowest level since 3.5 years at 77,325 a decade and who had reached him early in the month of June . Says one trader from Singapore, “a lot of fund managers convinced to sit down with the money without getting anything at all. Are happy being in a more conservative investment safer.”

In recent months, the safe assets such as the dollar, the yen and the U.S. Treasury has attracted an increasing flow of investments, as market participants worried about the gloomy outlook for the global economy. Banknotes also attracted to the treasury a lot of safe-haven flows, leading to Anfajad historical returns on U.S. bonds ten annually. The value of platinum fell to its lowest level since 3 weeks at $ 1,394.5, due to the gloomy economic outlook. Opponent between him and the gold was more than $ 180 per ounce, which is the deepest since the beginning of June.