Gold price technical analysis 1 – May, 2013 — Recently, the pair of gold / U.S. dollar were trapped between the level of $ 1444 USD/Ounce and the level of support / historical resistance at $ 1486 USD/Ounce.
Data released yesterday from the world’s largest economy was mixed. PMI from Chicago was weaker than expected, with the result of 49 (52.4 previously) and the data announced by the “Conference Board” showed that the consumer confidence index rose to 68.1 from 61.9 last month.
Although there are important data will be announced today, such as change in the data sector salaries non-agricultural and the ISM Manufacturing Index and Index PMI, but the focus will be on the authorization policy of the Open Market Committee Federal, which will be the main event of the day. After the GDP figures announced last week, which indicated that the economic recovery was losing his energy, I do not think that the members of the Federal Open Market Committee will rush to slow down or stop the asset purchase program by the end of the year.
But, what we have seen so far, some of the voting members of the Committee are very concerned about the large balance sheet of the FED Bank. In the event that if the central bank decided to end the quantitative easing program at the date earlier than expected, this will lead to the erosion of support for gold. In terms of technology, in the short term will be difficult trading gold as that the deliberative narrow range too, but in the end you will soon get to the point that, it will have to penetrate in a directions.
The main level at the top level will be $ 1486 USD/Ounce of gold. If the upside movement has been able to penetrate that level and hold above it, it is possible to see a progressive attempt towards the resistance level at $ 1500/1505 USD/Ounce, If the Upward movement failed and i expect that today, and the prices reflected the support of the lower will be at $ 1455 and 1444 and 1430 USD/Ounce. Hack below $ 1430 USD/Ounce will makes me think that we will test the level of $ 1398 USD/Ounce of gold. But i think that it will not happend in the near future