Gold falls before central bank meeting

Gold price technical analysis 30 - May, 2013

Gold declined during European morning trade on Wednesday, down from its highest level since mid-March with investors cautious ahead of a policy meeting the ECB on Thursday and non-farm payrolls data disappointing in the United States ..

On the Comex division of the New York Mercantile Exchange, the futures trading of gold for October delivery at 1692 USD/troy per ounce during European morning trade, Mtrajaaa 0.1%.

Gold prices traded in a narrow range at 1, 690.25 USD/troy an ounce, the lowest price for the day and the highest price for the session is 1693 USD/troy per ounce. Gold rose 1689 USD/troy per ounce of gold at Tuesday, its highest level since March 13.

The gold futures contract is likely to find support at 1644 USD/troy per ounce of gold, the lowest price since August 31, and the near-term resistance of 1700 USD/troy per ounce of gold the highest price since March 13.

Investors awaited a meeting of the European Central Bank (ECB) monetary policy on Thursday, amid expectations that the bank will give more details about the bond-buying program, which is long overdue aims to help ease funding pressures for heavily indebted euro zone countries.

The head of the European Central Bank Mario Draghi to European lawmakers on Monday that purchases of short-term bonds to help heavily indebted countries such as Spain and Italy will not violate EU rules.

The single currency remained under pressure, however, amid growing fears that the central bank may disappoint.

At the same time, the dollar’s gains were limited after manufacturing data disappointing in the United States on Tuesday to add to speculation that the Fed Aavidrala may soon announce a new round of monetary easing to support growth.

The Institute for Supply Management said its index of purchasing managers fell by 0.2 points to 49.6 in August from reading of $ 49.8 in July. Analysts had expected the index to fall IMS rose 0.2 points to 50.0.
And track the movements in the price of gold this year largely transform expectations about whether the U.S. central bank will pump more money into the financial system.

Gold rose 15% in earlier this year to record USD1, 790 USD/troy an ounce of gold after announcing that the Federal Reserve in January it will keep interest rates near zero until at least late 2014, referring to the possibility of a second round a new round of asset purchases.

However, prices fell by 5% in prices since late February, while the Fed failed to achieve more and easing amid fears of a worsening debt crisis in the euro zone, which has fueled demand for the precious metal, and the U.S. dollar.

Elsewhere in the COMEX December delivery fell 0.7% to trade at 32.17 dollars per ounce, while copper fell for December delivery rose 0.3% to trade at $ 3.459 a pound.