Gold falls amid concern of the global debt crisis

Gold price technical analysis 17 - June, 2013

Gold futures fell in morning European trading Thursday, adding to the losses the U.S. dollar strengthened after data showed that manufacturing activity in France fell to its lowest price in three and a half years in September, raising concerns about the outlook for global growth.


Earlier in the session, preliminary data showed China that manufacturing activity in Asia’s largest economy fell for 11 months in a row in September.


On the Comex division of the New York Mercantile Exchange, the futures trading of gold for October delivery trading at 760.45, $ 1 per ounce during European morning trade, shedding 0.5%.


Earlier in the session prices fell by up to 0.65% to trade at session lows 1, 758.45. Dollars per ounce gold futures rose to a record 779.25, $ 1 to Lawnsh on Wednesday, its highest price since February 29.


Gold prices were likely to find short-term support at 751.95, $ 1 Ansh, the lowest price since September 18 and resistance at 792.25, 1, dollars per ounce, the highest price since February 29.


The prices have fallen to their lowest levels of the session after a report survey of purchasing managers from France, the euro zone’s second largest economy.


Manufacturing index fell BMI in France to 42.6 in September from 46.0 in the final reading in the month of September. Analysts had expected the index to record 46.4.


Decline in service sector activity in France to its lowest level in four months from 46.1 in September from the final reading of 49.2 in August.


At the same time, market sentiment fell after data that PMI in China TSH HSBC rose slightly to 47.8 in September from 47.6 in the final reading in August.



Despite the rise simple, light industrial activity in China in the area of deflation for 11 months in a row, in addition to concerns about a slowdown than expected in the region’s largest economy.


The deeper slowdown in China, the economy of the world’s second-largest weaken the expansion of the global economy already struggling originally due to the debt crisis in the euro zone.


The sentiment on the euro remained weak amid reports that Spanish Prime Minister Mariano Rajoy is still not sure to seek assistance from the ECB c for new bond-buying program, which means to participate in a permanent bailout fund.


On Tuesday, Spain said that the Deputy Prime Minister in the country was still studying conditions rescue plan and looks forward markets bond auction 10-year Spanish government later the same day, as it was expected it to be an important test of investor appetite for the country’s debt.


In Japan, official data showed that the trade deficit rose unexpectedly trillion 0.47 trillion yen in August from a deficit of $ trillion 0.37 trillion yen the previous month. Analysts had expected the trade balance will remain unchanged in August which affect gold price today.



The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.55% to trade at 79.60, the strongest level since Sept. 13.


The strength of the U.S. dollar usually affect the gold me, because it alleviates the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.