Gold price technical analysis 12 – June, 2013 — Gold prices ended the day yesterday at a huge loss, as technical selling pressure continued to put pressure on the market. Decision, “S & P” in reviewing the US credit rating outlook, the United States moved from the negative area.It was another element against the gold price.
The pair of gold / U.S. dollar tried to climb above the level of $1387 USD/ Ounce, which happens to be the bottom of the consolidation area that lasted for two weeks, but faced strong resistance and trading when gold declined to a low level $1365.80 USD/ Ounce of gold. Although that, there is a big issue, the demand for gold and large purchases by the central banks, and low interest rates all seem supportive for gold, but reports indicate that large enterprises continue to bet on lower prices. Seems to be significant participants, believe that the Fed will reduce the asset purchases to $ 65 billion a month during a meeting of October, It is just a personal expectation, it is not based on any news.
I’ve been Descending strongly yesterday, and I pointed out that, any possible declines, could provide opportunities for sale including prices penetrated below the level of $1332 USD/Ounce of gold, the bottom of the consolidation area, which the pair started walking in it for more than 80 weeks. Based on procedures, the major stock markets will lose power and this situation is possible to push money back to the gold market.
Key levels for the day will be $1387 and 1370 USD/ Ounce of gold. In the event of continued downward movement to control the pair and pushed prices to below the level of $1370 USD/ Ounce , there is a probability that the bearish pattern and will resume downward movement will challenge the upward movement at levels of $1360 and 1354.50 USD/ Ounce of gold. In case of upward movement has successfully penetrate the resistance level at $1387, it is possible to see a progressive attempt to re-test the level of $1400 USD/ ounce of gold.