Gold price technical analysis 1- March, 2013- the pair of gold / U.S. dollar closed at a lower level, than the opening price for the second day with the continuation of the U.S. dollar to obtain power widely, after the data showed “PMI” from Chicago and numbers of weekly demands of the unemployed, record a better results than expected.
Data announced yesterday showed that “the scale of Chicago Business” rose to 56.8 from 55.6 and the demands of the unemployed for the first time fell to 344 thousand from 366 thousand. therefore, dropped happend for the pair of gold / U.S. dollar to the bottom of the parliamentary channel which is currently at $ 1575.65 USD/Ounce.
I think that the key to the continuation of the decline will be the level of $ 1575 USD/Ounce, and if that level is breached (which is the lowest level for yesterday) I think it will be a test of the support at levels of $ 1570 USD/Ounce and $ 1563.80 USD/Ounce.
Closure below the $ 1563.80 USD/Ounce level will indicate that the downward movement strongly controlled. In that case, I doubt that the support level at $ 1555 USD/Ounce will be able to withstand this time. But, in the event that the pair of gold / U.S. dollar hold above the level of $1575 USD/Ounce and turned up, the first challenge for the upward movement will be at $ 1587 USD/Ounce.
Will be on the upside movement to move above the level of 1587 in order to alleviate the selling pressure, and after that level, you will be resistance at $ 1597.77 USD/Ounce and $1604 USD/Ounce. Close above the level of $1604 USD/Ounce could act as a confirmation that the short-term activity turns into ascending again.