The precious metal recorded a rise by 1.02% from the early beginning of the trading until now 13:25 New York time, the rise of gold price was pushed by the bargain hunter and the decline of the US dollar today in front of major currencies like Yen and Euro.
The Yen recorded a rise in front of the US dollar after a data published from Japan today, concerned by the account surplus by 504 billion yen. The Euro followed the same foot steps of the Asian market and recorded a rise, after the last six weeks from continuous loses.
The US dollar was under pressure today supported by the Euro and Yen rise, the issue which push gold price to made some short covering position.
From a technical point view, we are in the same trend for gold price between the level of $1200 USD/ Ounce and $1270 USD/ Ounce. the trend of gold is a down trend and a small gaining profit process is expects to take place in the market tomorrow, but if the US dollar continue to decline we will watch a rise in gold price and encounter a new resistance at $1280 USD/ Ounce of gold.
The short covering process in the market today indicate that, there is still an interest from investors to buy gold as their safe assets. The rise of the Euro was supported by the rise of the European stock market and some good improvements coming out from Portugal and Greece, as a news was leaked indicate that the government of Portugal will reach a solution with the European union by the end of the current month.
The market will fluctuate tomorrow according to the US Dollar conditions, after the US dollar ended the last straight five weeks from gaining and starts to decline today, gold price starts to rise.
We can say after the positive employment data came out from USA, it was like the green light for the Fed to end the Assets purchase program, the issue which could push gold price to a new level between $1100 and 1600 USD/ Ounce of gold. The other thing which will push the real investors to return back to the market like the Central banks.