Gold price in a week 27 – 31 May, 2013 — In the last week we watched a fluctuate in gold price, but it was in the range of $1380 USD/Ounce to $1420 USD/Ounce of gold. It is the same narrow range of trading gold, we can say nothing happend in gold price in the last week, but it give us an indicator by a lot of changes is going to happend in gold price.
By the beginning of trading in the last week, we watch a slide rise in gold price. This rise was due to the increase of buying rate from Asia and the lack of trading in USA, because of the Memorial day in USA. the issue which made the market controlled by Asia. But due to the week of the data from Japan we watch the investors heading to buy gold, the issue which made gold price to reach the level of $1391 USD/Ounce of gold.
Gold price did not record match change until thursday, on thursday the market was surprised by weak U.S data about the labor market. The issue which lead to a sudden rise in gold price and a decline in the U.S . Dollar, gold price recorded 1420.70 USD/ Ounce of gold but it was the highest point for gold price. The decline in gold price in the next day 31 – May, 2013 was due to some technical buying (gaining profit process) its result was a rise in the U.S Dollar and a decline in gold price.
Gold price indicator
From the previous move of gold price, we can say that gold price is going to record a rise, but why?
Optimism about U.S Data and the recovery of the U.S economy has been ended, according to this data it is expected to watch a decline in the U.S. Dollar which will be followed for sure by a rise in gold price. But gold price could return a stability if burgin hunter interfered in gold market. But if they did not take place in the market we will watch a rise in gold price, especially after a data showed that the extraction of gold ounce recorded a rise to reach the level of $1300 USD/Ounce of gold, for sure it will lead to a rise in gold price in the near future.
Gold price could be in the same deliberative range. If USA data recorded any rise, in this case we will be in the same trading range of $138o to 1420 USD/ Ounce of gold. Asia could play a role in gold price in the case of Japan and china made any positive change in their policy, it could lead to a decline in gold price. But what about the physical demand ? there is a news showed that their is a decline in the physical demand in the last two days from China and India if it continued like that, we will watch a decline in gold price.
Tip for the investors on Monday, take a short position trading and follow the flow of the market to avoid any lose, and stay away from the U.S. Dollar.