Gold forecast to remain in the areas of «confusion»

Gold price technical analysis 30 - May, 2013

Precious metals markets are looking forward to the opening day of the week’s sessions went, having scored last week, the biggest decline since the beginning of the year.

He expected a specialist in precious metals stay precious metal in the areas of” confusion” in the coming days before they find” led by a powerful stimulus to either rise or fall”, pointing out that the European debt is no longer influential in investor confidence in gold.

Gold prices fell Friday, with the recovery of the dollar to record the largest gold weekly drop this year, the precious metal remained vulnerable to further decline after that shook the landing earlier in the week, investors’ confidence. In the Spot price of gold of $ 1711.60 an ounce, down 0.3 percent from its level at the close of the previous day in New York. He ended the week gold down 3.5 percent, the biggest weekly decline since mid-December (December).

At the COMEX division of the New York Mercantile Exchange the price of gold for the month of April, when a settlement of $ 1709.80 an ounce, down 12.40 dollars.

He favored the analyst Mohammed al-Qahtani precious metals that gold will remain in the areas of” confusion” that runs through certain areas of digital levels close to 1880 dollars per ounce, or return to the lows of the past which is close to the levels of 1450 dollars per ounce, adding that gold will remain in areas” volatility” to” see” a powerful stimulus is a real economic problems of Europe and non-inflation made in some countries in the Middle East.

He stressed that” there is no strong incentive” to continue to climb and penetrate the higher levels or sharp decline, and contact with previous bottoms, indicating that the global financial situation is still in the foggy areas. He added that these areas leads to either penetrate the gold standard of $ 1880 an ounce, or retreat to the levels of 1450 dollars per ounce.

He attributed the decline in yellow metal last week to the absence of a catalyst strong support for gold, but he emphasizes that the problems of Europe are no longer the real reason,” as the conflicting news coming from Europe, sometimes positive and sometimes negative”, adding that what happened from the heights due to the weakness of the dollar and the low levels of interest in U.S. banks to levels close to zero per cent.