Gold price technical analysis 10 – May, 2013 — the pair of gold / U.S. dollar try to reach the resistance level at $1486 USD/ounce of gold, but failed to do so, as the U.S. dollar gain some strength after a report announced, issued by the Department of AmericanLabor that demands of initial unemployment fell by 4,000 to 323,000, the lowest level since 2008.
Neither the upward movement nor the downward movement has enough strength, to get outside of the current consolidation zone. It seems that the visions about gold market is very mixed, and the long term vision of gold price is not clear. Where some investors think that, gold trade will be the cause in the continuity driven of the upward movement, it came with time that central banks around the world intensify its efforts to push the stimulus economies of their countries. And believe that physical demand for gold will remain high, and more buyers will enter the market if prices fall further.
On the other hand, some investors indicates that gold price movement that we have seen in April (to hack out of the massive consolidation, which was followed by the market since September 2011) is more than just a correction, and therefore the upward pattern has ended. These investors believe that the stronger U.S. dollar will accelerate the downward move.
Gold price is trapped between $1486-1422 USD/Ounce of gold,I agree with you that, it is so boring certainly, but the hack of this rectangle will determine the next move. In the event has been exceeded the support at $1442 USD/Ounce, the downward movement will targeting $1398 USD/ounce of gold.
On his way down, is expected to find support at $1430 and 1411 USD/Ounce. In case of the upward movement took control and pushed the pair back above $1486 USD/ounce, it is likely that we will see prices test the next resistance level at $ 1532 USD/Ounce of gold. To the top, gold price will had resistance at $1505 and 1514 USD/Ounce but for sure we will not watch it today.
One tip for gold trader about gold price
one tip for gold trader today keep away from gold, and if you had to do work on the sell flow and take short position, gold price market is not clear enough today or could not make a long session profit. you can ask any question on @MElkirsh, You are welcome any time.