Gold falls after the election results of Greek

Gold price technical analysis 30 - May, 2013

Futures fell for the gold away from the lowest levels during the European morning trade on Monday, where the losses after the victory of pro-rescue, easing fears of the risk out of Greek euro zone.

Some profit-taking also threw its weight, as investors cashed out of the market for a profit rise of 6 days per week, which raise prices to the highest level in nearly two weeks.

In the COMEX division of the New York Mercantile Exchange, the futures trading of gold for August delivery at 619.75, $ 1 per ounce during the early European trading, down by 0.5%.

He had been dropped earlier by 1.25% to trade at the lowest level in the session at 1, 609.25 dollars an ounce. Prices touched the highest level in seven days at 634.35, $ ​​1 an ounce on Friday.

The futures contracts for gold is likely to Q j very support at 559.35, $ ​​1 per ounce, the lowest price since June 8 (8) and in the near term resistance at 642.15, 1, dollars per ounce the highest price since June 6.

Called on the Conservative Party leader Antonis Samaras Democrats to get broad support after his election victory on Sunday Sirza Radical Party, who had threatened to cancel the aid package for the lenders in the country. (gold news)

The gains is limited , with increasing concerns about dealing with the financial crisis in Greece, while continued attention to go to Germany in the possibility to make concessions about the severe restrictions on the budget of Athens.

The preliminary results from the Interior Ministry said the party’s pro-democracy party, the new euro has gained 29.7% of the vote, while Sirza party came in second place by 27%.

Will be in front of the party is now three days to form a coalition government after winning 129 seats out of 151 seats it needs to lead the government included 300 seats, according to preliminary results.

The market sentiment faltered in recent weeks amid growing fears about the imminent exit of Greek and of the mass of the same coin.

However, investors are still wary of the fate of Greece, which is still uncertain for now. This will be the week that sees the second attempt in months from the Greek parties to form a coalition, after the failure of voters to form a new government in parliamentary elections on May 6.

In addition, investors were increasingly concerned about rising borrowing costs for Spain and Italy, amid fears that it will be the following countries in the euro area that need to be an international rescue package.

The yield on bonds with 10 years of Spanish Spanish for a week to their highest level since the euro Ncae. The rise in borrowing costs in spite of the efforts to isolate the effects of Madrid from the sovereign debt crisis continued through the approval of an aid package worth 100 billion euros to banks Spanish.

And Spain became the fourth country in the euro area, which seeks to rescue this week. Some investors fear it is only a matter of time before the country to become Italy’s next Ihtad to help.

Later in the day, due to the 20 Woe to the top of the center of its hopes for the creation of new measures to combat the crisis in Europe.

In a statement, said the leaders of the Group of 20 that he was in all our interests, “the survival of Greece in the euro area, while respecting its international obligations for the rescue package.