Gold price technical analysis 10 – June, 2013 — The Pair of gold / U.S. dollar ended the last week on its buggest lose since May 24.
Gold price, failed to penetrate over the resistance level at the $1420 USD/ Ounce of gold, during the European session on Friday. The selling pressure increased after the labor data came in slightly better than expected. Salaries rose by 175,000 during the month of May, according to data released by the Department of Labor on Friday, while economists were expecting a 164,000 increase.
Data coming from the United States provided more evidence that the world’s largest economy is on track, although we are still far from the goal of the Federal Reserve Bank. Chairman of the Federal Reserve Bank of Chicago, Mr. “Charles Evans” request that there will be growth in jobs for 6 months at a rate of over 200,000 per month, before it has sufficient confidence to support the termination of the quantitative easing program. However, the Fed seems much closer to reduce the pace of its purchases and this factor reduces the speculative demand for gold.
Until the market gets a clear signal from the Fed, the upbeat economic data will flow the money to the U.S. dollar and the U.S. stock market. In the previous analysis, I repeated that, I was expecting that the overall pattern remains in the gold market downward as a result of expectations that we see from the market. For sure how the market move and the weakness of demand on gold make me say that. If Gold price did not take the upward movement we are going to stuck in the down channel until the end of the summer.
From a personal point of view. If the low gold price did not attracted some buyers and makes the pair began to rise, I expect to see resistance at $1387, 1400 and 1414 USD/ Ounce of gold.I think we will test $1372.50 USD/Ounce of gold first. In the event, breaking through a pair gold / dollar below this support, then the $1360 and 1354.50 USD/Ounce will form the following objectives on the long term. Weekly close below the $1354.50 level means that movement downward attend to the level of $1338 and 1320 USD/Ounce of gold.